Anthropic · Gemini · Claude · CryptoSlate
Zcash drops over $5 billion after AI flags 4-year flaw that could have rolled out fake hidden coins
Compiled by KHAO Editorial — aggregated from 1 source. See llms.txt for citation guidance.
◌ Single Source
Zcash lost more than $5 billion in market value after its developers, using Anthropic's Claude AI, discovered a long-running flaw in one of its privacy systems that could have enabled counterfeit tokens to be created without easy detection.
Key facts
- In response to this disclosure, data from CryptoSlate showed that ZEC fell more than 50% to as low as $255 before recovering to about $321 as of press time
- Data from Zechub shows that roughly 30% of circulating ZEC, equivalent to more than 5 million coins, now sits in shielded addresses
- The price decline caused the privacy-focused token’s market capitalization to fall from about $ 10 billion to roughly $ 4.5 billion during the reporting period
- The caution arrives as the DeFi sector faces mounting pressure, having lost over $1.1 billion to exploits in the past year
Summary
01 Zcash fell over 50% after developers said Claude AI helped uncover a four-year flaw in Orchard’s privacy system. 02 The bug raised fears that counterfeit shielded coins could exist undetected, hitting confidence in privacy money and slicing market value. 03 Developers patched it before any known exploit, but they cannot prove no abuse happened, and a new verification upgrade is proposed. In response to this disclosure, data from CryptoSlate showed that ZEC fell more than 50% to as low as $255 before recovering to about $321 as of press time.