Zcash drops sharply after hidden flaw found by AI

A security engineer recently spotted a hidden flaw in Zcash’s privacy system using AI. The bug allowed fake coins to be created without anyone noticing. This vulnerability existed since 2022 but went unnoticed even by expert cryptographers. When tested, the flaw let someone generate unlimited fake coins in a private test setting. The team fixed it quickly, but experts can’t be sure if anyone used it before the patch.To prevent future risks, the team may add a way for users to check that no fake coins exist in the system. They also plan to launch a new privacy feature and track all existing coins more carefully. Meanwhile, Zcash’s price dropped by 25% in a single day after hitting a rough patch. The coin almost reached $700 earlier this year but then fell hard. Now, it’s struggling to stay above $300. If it drops below $250, it could keep falling toward $200 or even lower.