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Shielded Labs stories

Jun 5, 2026

Zcash Plunges 38% After AI Discovers Critical Four-Year-Old Counterfeiting Vulnerability in Orchard Shielded Pool

Privacy-focused cryptocurrency Zcash crashed 38% after Shielded Labs disclosed a critical bug in its Orchard shielded pool that could have enabled unlimited counterfeit token creation. The vulnerability, which went undetected for four years, was discovered through an AI-assisted audit using Anthropic's Claude Opus 4.8.

Jun 5, 2026·6 sources
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Top claims

  • ▪Shielded Labs proposed a network upgrade to deploy a new shielded pool with "turnstile accounting" to allow for independent supply verification.
  • ▪Bitcoin developer Peter Todd cited the incident to argue against integrating Zcash-style privacy into Bitcoin, stating the cryptographic risk profile is too high.
  • ▪ZEC's price fell from a high of around $635-$645 to an intraday low between $250 and $309.

Topics

BlockchainsZcash Orchard pool vulnerabilityCrypto market sentimentSmart contract platformsAI securityPrivacy coins
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