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Security researcher catches Zcash flaw allowing ‘unlimited’ counterfeit minting; ZEC drops 31%

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Security researcher finds Zcash vulnerability allowing 'unlimited' counterfeit minting; ZEC drops 31%.

A security researcher discovered a critical vulnerability in Zcash's Orchard transaction pool that could be exploited to create an "unlimited" amount of counterfeit tokens within the pool.

Key facts

Summary

Shielded Labs, an independent Zcash support organization, published the findings on the social media platform X on Thursday. The announcement coincided with a steep decline in the price of Zcash (ZEC). Hornby, a long-time contributor to the Zcash ecosystem, evaluated the protocol using both AI-assisted and traditional security research techniques to identify vulnerabilities before they could be exploited by malicious actors, according to the post. On May 29, Hornby discovered the Orchard circuit vulnerability using Anthropic's newly released Opus 4.8 model and immediately shared the findings with engineers at the Zcash Open Development Lab (ZODL).

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