Arkham: Zcash Isn’t a Privacy Coin. It’s a Choice.

• Advertisement -

• Arkham says that Zcash privacy features are not enabled by default and that most platforms use traceable addresses and transactions.

• It claims to have tracked over $420 billion worth of ZEC to known individuals and institutions, many of whom thought their transactions were private.

Zcash has reclaimed its spot as one of the top coins in the market as the need for privacy in crypto makes a comeback. However, according to one blockchain intelligence company, most ZEC holders do not use the privacy features, and their details are exposed on-chain.

Zcash has been this year’s standout coin, only rivaled by Hyperliquid’s HYPE. Over the past week alone, it has gained 28% and now trades at $670, bringing its gains in the past three months to 177%.

However, according to Arkham, most people who turn to Zcash for its enhanced privacy do not enjoy this feature at all.

How to Track ZCash Transactions

Zcash is a privacy-focused cryptocurrency built on Bitcoin’s codebase, using zk-SNARKs to hide transaction data on-chain.

Our research team wrote a guide on how Zcash works, why most ZEC activity is still traceable, and how to track it with… pic.twitter.com/87kLo2I0mC

— Arkham (@arkham) May 25, 2026

Zcash enables privacy through a specific type of zero-knowledge proof called a zk-SNARK (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge). zkSNARK enables the network to prove that a transaction is valid and there was no double-spend, without revealing the other details, such as the transaction parties.

Zcash has two address types. The first is transparent, or t-addresses, where all activity is visible on-chain, and the second is shielded, or z-addresses, which use an encrypted pool to hide transaction details.

This results in four transaction types. When a t-address sends funds to a z-address, the sender’s details are visible, but the recipient’s are not, and vice versa. z-to-z transactions are fully private, while t-to-t are fully visible.

Types of Zcash Transactions. | Source: Arkham.

The problem for users is that most exchanges and wallets default to t-addresses to comply with regulators. This means that most users who believe their Zcash transactions to be fully private have their details plastered on-chain.

The Zcash Privacy Choice That Most Miss

To prove the traceability of Zcash transactions, Arkham traced and labeled at least $420 billion worth of ZEC, tying it to known individuals and entities. The company noted:

“That figure is remarkable for a chain explicitly designed to obscure transaction data. It’s possible because the majority of Zcash transactions are still transparent, and because on-ramps and off-ramps: exchanges, custodians, institutions, often maintain transparent addresses for ease of transfer.”

The company gave case studies of ZEC it has been tracking. One is the ZEC held by the US government, which it seized from the founder of AlphaBay dark web market upon his arrest in 2017. These 3,691 ZEC coins are worth $2.48 million today, up from  $737,000 at the time of the seizure.

Arkham also claims to track major Zcash traders, including one who bought the dip in October, investing $4.49 million worth of ZEC. When the coin started surging, he sold his stash for $6.6 million.

The company reiterated that Zcash remains private money, but it depends on the user’s choice of address and transaction type. It stated:

“That does not make Zcash’s privacy guarantees weak. A z to z transaction remains cryptographically opaque. What it means is that how you use Zcash determines how private you actually are.”