Solid Intel 🛰Crypto

Zcash founder confirms a critical Orchard bug that could have created unlimited, undetectable counterfeit ZEC was live from May 2022 until…

Zcash founder confirms a critical Orchard bug that could have created unlimited, undetectable counterfeit ZEC was live from May 2022 until it was patched June 1. Due to the pool's privacy, there is no way to prove whether it was ever exploited. Fix: a proposed network upgrade adding a new shielded pool + turnstile accounting, to let anyone verify the integrity of the ZEC supply. $ZEC fell ~25% on the disclosure. Notable: the bug that was undetected for ~4 years was found using Anthropic's Opus 4.8, released just days earlier, as part of an AI‑assisted security audit. A flaw the world's best cryptographers missed, surfaced by a white‑hat using a new AI model. Context: Some argue this is the structural trade‑off of all private money, not a ZEC‑specific failure. As X user put it, you can't have both full privacy and fully transparent supply auditability in one system. Transparent chains like $BTC expose any inflation bug in the raw data; private chains can't. Zcash's turnstile accounting is designed to limit exactly this. Developing story. Shielded Labs to publish the upgrade proposal next week. More as it comes.
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