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Zcash Plummets 30% as Shielded Labs Reveals a Major Bug that Went Undetected for Four Years

Summary by Coin Desk
Shielded Labs revealed that the bug could have helped an attacker print unlimited counterfeit tokens. That could have damaged trust in the token's supply and its value.

29 Articles

Key Points of the News An AI system detected a four-year vulnerability in Zcash that could have allowed the unlimited issuance of tokens, generating concern for hidden crypto and banking failures. The revelation caused market tension, with Zcash dropping about 38% in 24 hours. Experts warn that similar weaknesses could exist in traditional and decentralized financial infrastructures as the audit progresses with AI. A recently discovered vulnerab…

Privacy has historically been one of Zcash's main value arguments, but a recent security finding has put the project under intense pressure. A critical vulnerability discovered in the network's secured transaction system could have allowed the creation of virtually unlimited amounts of counterfeit ZECs undetected within one of the most important components of the protocol. The revelation coincided with a sharp decline in the Zcash market, whose …

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The Defiant broke the news on Thursday, June 4, 2026.
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