Arthur Hayes Just Dumped His Entire Zcash Position After a Bug That Could Have Allowed Counterfeit ZEC for 4 Years
Shielded Labs said the flaw could have let hackers mint unlimited counterfeit tokens, and ZEC fell 42% in 24 hours.
- On Friday, June 5, 2026, BitMEX co-founder Arthur Hayes liquidated his entire Zcash position following the public disclosure of a critical vulnerability in the network's Orchard Pool.
- Security engineer Taylor Hornby of Shielded Labs identified the bug on May 29, 2026, using AI-assisted methods; the flaw persisted undetected for four years until a June 3, 2026, hard fork patched it.
- ZEC dropped over 30% from highs above $600 to approximately $390, erasing over $3 billion in market cap; blockchain analytics firm Arkham reported one large investor lost over $174 million.
- Hayes, who previously included ZEC in his "Holy Trinity" portfolio, wrote that while unauthorized minting is unlikely, the bug undermines the narrative of protecting privacy from AI and Big Tech.
- Traders are now watching 200-day EMA support near $367, while market observers debate whether the exit represents disciplined risk management or the "shill, pump, dump, repeat" cycle previously documented.
20 Articles
20 Articles
Zcash price plunges 50% amid bug fallout and Hayes selloff, can whales reverse the trend?
Zcash has plunged nearly 50% from its recent high after disclosure of a critical network vulnerability triggered panic selling, forced liquidations, and the exit of one of the privacy coin’s most prominent supporters. According to crypto.news market data, Zcash (ZEC)…
The disclosure of a critical vulnerability puts massive pressure on Zcash. Arthur Hayes draws conclusions and sells his entire ZEC position. Source: BTC-ECHO BTC-ECHO
Arthur Hayes Dumps Zcash Stake After Critical Orchard Pool Bug
Why Did Arthur Hayes Exit His Zcash Position? Arthur Hayes, chief investment officer of Maelstrom, said he sold his entire zcash position after developers disclosed a critical vulnerability in the network’s Orchard Pool that could have allowed unlimited counterfeit ZEC to be minted. Hayes had previously been one of ZEC’s higher-profile supporters, but said the disclosure broke his confidence in the token’s supply integrity. He said he believed a…
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