Zcash Crashes 40% as Hidden Vulnerability Surfaces; Whale Bought 37K ZEC

Zcash Price Crashes 40% but ZEC Whale Bags 37K Coins, Recovery Ahead? 1 hour ago By Rupam Roy Rupam Roy Sub-Editor Expertise : Crypto, Blockchain, Web3, Artificial Intelligence (AI), Global News, Stock Market Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam's expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news. Rupam's career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience. Read full bio Why Trust CoinGape CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy , our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information. Highlights Zcash crashes over 40% after critical long-hidden protocol vulnerability is revealed. Panic selling intensifies as Arthur Hayes exits entire ZEC holdings. Whale accumulates 37K ZEC post-crash, signaling possible recovery sentiment. AD Get $10 Instantly + $50 Trial Access Zcash prices crashed over 40% today following a rather unwelcome revelation by developers. A severe vulnerability in the protocol's Orchard shielded pool left the privacy coin exposed for more than four years, potentially allowing hackers to execute undetectable counterfeiting. Because nothing says "privacy coin" like a bug that quietly mints extra supply. This has sparked concerns, with many dumping their ZEC holdings. For context, BitMEX co-founder Arthur Hayes, who has long been bullish on the privacy coin, has dumped his entire ZEC holdings. However, despite that, it seems some whales are treating the recent chaos as a buying opportunity, as evidenced by the latest on-chain transaction data. Ad Ad Zcash Price Dips 40% Amid Market Concerns Zcash was one of the top laggards in the crypto market today, with its price posting double-digit losses. The move came after developers revealed a critical vulnerability that had gone undetected for years, shaking investor confidence in the privacy coin. The disclosure centered on a flaw within the Orchard shielded pool, a core component designed to enable private transactions. According to developers, the bug potentially allowed malicious actors to create counterfeit ZEC tokens without leaving any trace on the blockchain. The issue was uncovered on May 29 by security researcher Taylor Hornby using AI-assisted auditing tools, highlighting both the growing sophistication of blockchain analysis and the lingering risks within privacy protocols. In a public statement, Shielded Labs acknowledged the severity of the flaw, noting that due to the protocol's privacy features, it is impossible to determine whether the exploit was ever used. Meanwhile, the development triggered panic selling, sending the Zcash (ZEC) price down by more than 40% today. Ad Ad ZEC Whale Remains Bullish, Hinting at Recovery Ahead Despite the massive dip in Zcash price, a whale has aggressively bet on the privacy coin. According to Lookonchain data, a new wallet bagged 37,316 ZEC tokens, worth $13.12 million, from Binance after the crash. This indicates that some investors are taking the recent crash as a bu