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The price of Zcash drops 31% after the revelation of a potential unlimited ZEC token minting vulnerability

The price of Zcash (ZEC) reportedly plummeted around 31% following the disclosure of a critical vulnerability in the Orchard shielded pool privacy system that could potentially allow for the creation of counterfeit ZEC in unlimited amounts without detection.
The vulnerability was discovered by security researcher Taylor Hornby on May 29, 2026, with the help of an AI-based tool. According to a report published by Shielded Labs, the flaw has been present since the network update activation in May 2022.
The bug could potentially enable malicious actors to create new ZEC tokens without adhering to the supply rules set by the network. More concerning, Zcash’s privacy design makes such activities potentially difficult for outsiders to detect.
Nevertheless, Shielded Labs stated that the likelihood of real-world exploitation is low. They assess that the vulnerability is unlikely to have been exploited, given that the same code has undergone various audits and reviews over the past few years.
The development team acted quickly, releasing a fix on June 1, just days after the flaw was reported. Additionally, the developer community proposed new enhancements aimed at providing cryptographic proof that no hidden inflation occurred due to the bug.
Although the vulnerability has been patched, the market responded negatively. The sharp price decline indicates ongoing investor concerns about the supply guarantees and monetary integrity of Zcash. As a privacy-focused cryptocurrency, the public’s ability to verify the circulating coin supply is indeed more limited compared to transparent blockchains like Bitcoin.