Zcash unveils two-step fix after vulnerability rattles ZEC

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Mikhail Vnuchkov

7 hours ago

Zcash unveils two-step fix after vulnerability rattles ZEC — Developers deployed emergency fixes to address a critical vulnerability in Zcash's Orchard shielded pool

Zcash Open Development Lab (ZODL) CEO Josh Swihart has outlined a two-stage plan to address a critical vulnerability in the Orchard shielded pool. The incident raised questions about the reliability of ZEC’s supply integrity mechanisms, although the asset has since recovered part of its losses.

In a post on X, Swihart explained that the issue affected Orchard, a component used for private Zcash transactions that relies on zero-knowledge proofs to conceal transaction details.

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The first step involved a soft fork that temporarily restricted Orchard operations. According to Swihart, the measure reduced the risk of a potential attack on the shielded pool while developers prepared a permanent fix.Developers subsequently activated the NU6.2 hard fork, which addressed the root cause of the vulnerability and restored Orchard functionality. Swihart said ZODL coordinated with mining pools, cryptocurrency exchanges, and other ecosystem participants to prepare the network for the upgrade.

The issue became public after researchers at Shielded Labs warned that the flaw could have allowed attackers to create an unlimited number of counterfeit ZEC tokens within the private pool.

ZEC recovers

Shielded Labs said the vulnerability has been fixed and that no evidence was found indicating it had been exploited before the upgrade. However, the team noted that it is impossible to provide cryptographic proof that no such attacks occurred in the past.

Following the disclosure, ZEC plunged more than 50%, falling from $644 to as low as $299.

The asset later recovered part of its losses and was trading near $427 at the time of writing, according to TradingView data. That represents a gain of roughly 43% from the local low recorded on June 5, 2026.

ZEC/USDT chart on Binance.

The incident has reignited concerns about supply auditing in Zcash. While the network’s privacy features protect user data, they also make it more difficult for independent observers to verify that no unauthorized coins have been created.

Migration to a new pool

In response, ecosystem participants have begun discussing longer-term measures aimed at restoring confidence in the network. One proposal, known as Ironwood, would gradually phase out Orchard and migrate user funds to a new shielded pool.

Supporters of the proposal argue that the new design would provide stronger guarantees around monitoring the circulating supply of ZEC.

The discussion has also focused on passive holders who may not immediately move their funds. Former Ripple CTO David Schwartz argued that users should not lose access to their coins if the vulnerability was not exploited before the migration begins.

Earlier, BitMEX co-founder Arthur Hayes said he had fully exited his ZEC position after learning about the vulnerability.

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