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Wei Dai highlights a recently reported bug in the Zcash Orchard zero-knowledge circuit, initially brought to attention by another security researcher.
Dai observes that while the issue appears obvious in hindsight, it escaped detection by even the most diligent protocol designers, cryptographers, and auditors. Dai further cautions that the situation may deteriorate further before improvements emerge.
Earlier this year, Wei Dai noted that some onchain privacy protocols, such as Railgun, require multi-day deposit delays that can complicate regulatory oversight. In a previous article, he warned that authorities may not immediately flag suspicious privacy tool usage. The recent Zcash Orchard circuit bug adds to concerns over the robustness of privacy protocols under scrutiny.