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Zcash crash 📉

Zcash crash 📉

Privacy coin Zcash plummeted by double digits Friday, after the disclosure of a "critical counterfeiting vulnerability."

Stephen Graves
June 05, 2026

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📝 What you need to know

It’s been a brutal week for crypto, and Friday offered no respite. Privacy coin Zcash plummeted by double-digits after the disclosure of a (since-patched) bug that could have allowed undetectable counterfeiting of the protocol’s ZEC token in its Orchard shielded pool for over four years.

The vulnerability, exposed through an AI-assisted audit, was particularly striking because by the privacy coin’s very nature, there was “no definitive way to determine” whether the bug had been exploited. The fallout was immediate, with Arthur Hayes dumping his holdings and Winklevoss-backed Zcash treasury Cypherpunk Technologies plunging nearly 40% on the news.

With the market reeling, the hits kept coming: strong U.S. jobs data and attendant expectations of an interest rate hike sent Bitcoin under $60,000 for the first time since 2024. Amid all the bad news there was one glimmer of positivity, as U.S. spot Bitcoin ETFs broke their record 13-day outflow streak—but it’s scant comfort for crypto bulls.

ZEC Crashes as Zcash Discloses ‘Critical Counterfeiting Vulnerability’

An Orchard vulnerability that allowed undetectable counterfeiting of ZEC in its shielded pool has reignited debate over privacy coins.

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📰 In the News

Bitcoin Dives Below $60K Following Strong Jobs Data, Zcash Crash Shaking Crypto Confidence

Bitcoin has now fallen more than 50% from its October peak, dipping below $60,000 as the crypto industry reckons with the Zcash vulnerability.

Winklevoss-Backed Zcash Treasury Plunges Nearly 40% on ZEC Privacy Bug Concerns

Cypherpunk Technologies shares tumbled to their lowest point since March as jitters tied to a Zcash bug knocked the Winklevoss-backed firm.

Government Stablecoin Payments Would Fuel 'Tax Evasion Economy,' Lawmaker Warns

Rep. Brad Sherman warned that allowing government payments in stablecoins would "sanctify an alternative to the U.S. dollar."

With over 75 markets, the Myriad World Cup 2026 Contest enables users to make predictions on every single match. A prize pool of $100,000 is on offer for top traders and makers. The top three traders receive $20,000, $10,000 and $5,000 respectively.

📊 Myriad Insight of the Day

ETH at three digits when Bitcoin drops below $50K?

YES 34%

66% NO

Why it matters

Hitting three-digit ETH while BTC bottoms at $50K would mean ETH falling ~44% from current ~$1,775 versus BTC's ~22%—a 2x underperformance that runs against current institutional consensus. Standard Chartered argued this week that Strategy's BTC sale marked a turning point and ETH is now positioned to outperform from here, per Decrypt. With the ETH/BTC ratio already at multi-month lows, the slight 62% to 66% creep reflects firming conviction.

Source: As Bitcoin Sinks, It's Time for Ethereum to Outperform: Standard Chartered (Decrypt)

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📚 Watch, Listen & Learn

📹️ WATCH: Massive ZCash Exploit Found by Claude, Extent Unknown, Markets Did NOT Like It

🎧 LISTEN: The Decrypt News roundup with TylerD - June 5th

A major Zcash exploit has rocked the ecosystem and many are worried about what comes next.

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Software firm Strategy (formerly MicroStrategy) and its co-founder Michael Saylor have become synonymous with Bitcoin. Here’s what you need to know.

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