Zcash Flaw Sparks Monero Audit Interest as Privacy Coin Debate Heats Up

TheNewsCryptoPublicado a 2026-06-06Actualizado a 2026-06-06

Resumen

A significant security flaw in Zcash's Orchard privacy pool was disclosed by non-profit developer Shielded Labs, causing ZEC's price to drop 38% in 24 hours before a modest recovery. The vulnerability, discovered on May 29th by security researcher Taylor Hornby using Anthropic's Opus 4.8 AI model, could have allowed an attacker to create an unlimited supply of counterfeit ZEC tokens undetected. This event has intensified the privacy coin debate. In response, Hornby announced plans to audit Monero (XMR), a leading privacy-focused cryptocurrency that, unlike Zcash, defaults to hiding all transaction data. Hornby expressed confidence in finding vulnerabilities in such privacy coins. The disclosure has cast fresh security scrutiny on the sector.

After non-profit developer Shielded Labs revealed a serious weakness in the blockchain’s Orchard privacy pool, which could have jeopardized the integrity of the token supply, Zcash (ZEC) fell 38% in 24 hours, speeding up the drop. Recent trading for ZEC has been around $361, with a low of $290, and the price has made some modest recovery of around 8% in the last 24 hours as per data from CMC.

Fresh Security Scrutiny

On Thursday night, Shielded Labs released a comprehensive disclosure about X, exposing a security hole that, if used, might have enabled an attacker to secretly produce an infinite supply of fake ZEC tokens. Imagine someone sneaking into the Federal Reserve’s dollar printing machine and making off with a bunch of additional cash; the only difference is that not even the Fed would know it happened.

The flaw was found on May 29th by Taylor Hornby, a security expert hired by Shielded Labs in April 2026 to find protocol weaknesses before bad guys could. The Orchard circuit is the cryptographic scheme supporting Zcash’s most sophisticated privacy pool; Hornby performed a focused evaluation of it using Anthropic’s newly published Opus 4.8 AI model.

One of the tokens that security researcher Taylor Hornby plans to audit next is privacy coin Monero. Hornby utilized Anthropic’s Opus 4.8 AI model to discover a serious flaw in Zcash. Hornby said, “Absolutely!” when asked on X whether he could find vulnerabilities in private coins like Monero. Adding that, Monero will be put up to my list of things to audit.

Unlike Zcash, which gives users the option to be either visible or shielded, Monero (XMR) defaults to hiding transaction data and is one of the biggest privacy-focused cryptocurrencies.

Highlighted Crypto News Today:

Worldcoin Falls Terribly as Arthur Hayes Dumps WLD

Preguntas relacionadas

QWhat was the key event that triggered the drop in Zcash's price and sparked interest in auditing Monero?

AThe key event was the disclosure by Shielded Labs of a serious security flaw in Zcash's Orchard privacy pool, which could have allowed an attacker to secretly create an unlimited supply of fake ZEC tokens.

QWho discovered the critical vulnerability in Zcash's Orchard circuit, and what tool did they use?

AThe vulnerability was discovered by security expert Taylor Hornby, who was hired by Shielded Labs. He found the flaw using Anthropic's newly published Opus 4.8 AI model.

QHow did the disclosure of the Zcash flaw specifically impact its price (ZEC) in the short term?

AFollowing the disclosure, Zcash (ZEC) fell 38% within 24 hours, reaching a low of around $290. It later saw a modest recovery of about 8% in the subsequent 24 hours.

QWhat is the fundamental difference between Monero's (XMR) and Zcash's (ZEC) approach to privacy, as mentioned in the article?

AThe fundamental difference is that Monero defaults to hiding all transaction data by design, whereas Zcash gives users an option to choose between transparent (visible) or shielded (private) transactions.

QWhat is the next project that security researcher Taylor Hornby plans to audit, and what was his confident response regarding finding vulnerabilities in it?

ATaylor Hornby plans to audit the privacy coin Monero next. When asked on X if he could find vulnerabilities in privacy coins like Monero, he responded, 'Absolutely!'

Lecturas Relacionadas

The White House's "Exclusive" Teleprompter Operator Makes Over $100,000 by Profiting from Insider Information Predictions

"White House Speech Prompt Operator Earns Over $100,000 Using Insider Information on Prediction Markets" U.S. White House staffer Gabriel Perez, a long-time teleprompter operator for former President Donald Trump, has been suspended without pay for using non-public information to profit on prediction markets. As one of the few individuals with advance access to Trump's prepared speech texts, Perez placed bets on specific words or phrases Trump would mention in speeches over a three-month period, earning over $100,000. His activities were flagged by the prediction platform Kalshi, which froze over $90,000 in his account and reported him to the Commodity Futures Trading Commission (CFTC). While Perez avoided criminal charges, he is required to return his profits and cease such trading. This case marks the third major instance of insider trading on prediction markets involving government or corporate insiders, following earlier cases involving a special forces soldier and a Google engineer. The incident highlights the vulnerability of "mention" markets on prediction platforms, where individuals with advance knowledge or even the speakers themselves can easily manipulate outcomes. In response, platforms like Kalshi are tightening rules, now requiring users to disclose their employers to help prevent similar abuses.

marsbitHace 36 min(s)

The White House's "Exclusive" Teleprompter Operator Makes Over $100,000 by Profiting from Insider Information Predictions

marsbitHace 36 min(s)

White House 'Exclusive' Teleprompter Operator Cashes in Over $100,000 Using Insider Information for Predictions

The White House is embroiled in another insider trading scandal, this time involving a teleprompter operator for former President Trump. Gabriel Perez, a longtime aide who controlled Trump's speech teleprompters, used his advance knowledge of speech content to profit over $100,000 on prediction markets like Kalshi by betting on which specific words Trump would mention. After Kalshi's monitoring systems flagged suspicious trading activity and froze his funds, the case was referred to the CFTC. Perez was suspended without pay by Trump, who called his actions "disgusting." Unlike previous insiders prosecuted in similar cases, Perez faced no criminal charges, only a CFTC settlement requiring him to return profits and cease such trading. The article highlights how "mention" markets are uniquely vulnerable to manipulation by insiders or even the speakers themselves, citing examples like a Grammy host jokingly saying a random word and a Coinbase CEO reading all prediction market options aloud. As prediction markets like Kalshi tighten compliance—such as requiring users to disclose employers—the piece argues this crackdown on insider trading, while promoting regulatory compliance, may move these markets further from "collective wisdom" and closer to being pure gambling venues.

Odaily星球日报Hace 39 min(s)

White House 'Exclusive' Teleprompter Operator Cashes in Over $100,000 Using Insider Information for Predictions

Odaily星球日报Hace 39 min(s)

Bitcoin Mining Farms Are Becoming AI Factories

Bitcoin mines are transforming into AI factories. This shift is driven by the convergence of three key assets from the previous crypto cycle: infrastructure, talent, and capital. Crypto mining companies like Crusoe, CoreWeave, and Bitdeer are repurposing their core competency—securing power, land, and grid connections in remote locations—to build data centers for AI clients. These firms are signing multi-billion dollar, long-term contracts with companies like Anthropic, AWS, and Microsoft, as AI's demand for reliable, high-capacity compute surpasses the profitability of Bitcoin mining. Simultaneously, crypto entrepreneurs and engineers are applying their skills to new AI ventures. Examples include OpenSea's co-founder launching OpenRouter (an AI model aggregator), and former Coinbase engineers building Fal.ai (a generative media infrastructure platform). Their experience in building scalable, global software networks translates effectively to the AI space. Furthermore, capital accumulated during the crypto boom is now fueling AI. Figures like Jed McCaleb (co-founder of Ripple) funded Voltage Park, a large-scale GPU cloud provider. Notably, some crypto investments, like FTX's early bets on Anthropic and Cursor, have generated astronomical paper returns, demonstrating how high-risk crypto capital flowed into AI before it became mainstream. The transition is not just about repurposing hardware, but about redirecting critical resources—power infrastructure, distributed systems expertise, and venture funding—to the next technological frontier: artificial intelligence.

链捕手Hace 53 min(s)

Bitcoin Mining Farms Are Becoming AI Factories

链捕手Hace 53 min(s)

Morpho Launches Fixed-Rate Product Midnight: Lenders and Borrowers Set Their Own Rates, Ending the Era of Interest Rate Models

Morpho Launches Fixed-Rate Product Midnight: Lenders and Borrowers Set Their Own Rates, Ending the Era of Algorithmic Interest Models On-chain lending has grown to $60 billion but remains minuscule compared to traditional finance's $200 trillion annual credit volume. Morpho identifies the lack of fixed rates and maturity dates as key bottlenecks. Institutions need predictability, not the passive floating rates set by algorithmic models. Midnight allows lenders and borrowers to directly quote rates, set terms, and become price makers, not takers. Fixed-rate lending is now viable due to cheaper, faster blockchains and the entry of institutions demanding control and certainty over returns, costs, and duration. Morpho Blue previously gave users control over risk; Midnight adds control over interest rates. Past attempts at on-chain fixed-rate lending failed primarily because they were built on top of floating-rate pools (creating unpredictability) or lacked sufficient active participants. Midnight avoids these pitfalls as a standalone primitive with fixed rates at its core, built upon Morpho Blue's existing large and active user base. Midnight offers distinct value: institutions gain predictable term structures and full control; fintech companies can offer tailored fixed-rate products; lenders/borrowers achieve predictability and efficiency; and curators can now differentiate by configuring both risk and interest rates. Morpho Midnight is not a replacement for Morpho Blue. The Morpho network will now feature two complementary market structures: floating-rate/open-term (Blue) for flexibility and fixed-rate/fixed-term (Midnight) for predictability. Liquidity can flow between them. The launch will be gradual, prioritizing security. Initially, it will support direct lending on Base network with one trading pair (cbBTC/USDC) and limited maturity dates. Advanced features like auto-rollovers will be introduced later.

marsbitHace 53 min(s)

Morpho Launches Fixed-Rate Product Midnight: Lenders and Borrowers Set Their Own Rates, Ending the Era of Interest Rate Models

marsbitHace 53 min(s)

Crypto payments for gray-market peptides up by 700% in a year – Details

The use of cryptocurrency payments, primarily Bitcoin and stablecoins, for gray-market peptides in the United States surged by 700% in a year, according to a recent report. These peptides, often sold as wellness or anti-aging aids, exist in a regulatory gray area. Facing tighter restrictions from traditional banks, vendors increasingly accept crypto, with some Chinese suppliers accepting only Bitcoin. This has attracted mainstream consumers seeking cheaper access, even those new to cryptocurrency. Data from Chainalysis shows gray-market peptide vendors received $32 million in crypto in Q1 2026, projecting an annual run rate over $100 million. TRM Labs noted a similar trend, estimating $41.4 million in crypto inflows to Chinese peptide sellers in 2025. Analysts highlight this involves many first-time crypto users, distinct from historical darknet market activity, and underscores crypto's role in facilitating cross-border value transfer. This growth occurred alongside a broader downturn in general retail crypto transaction volumes in early 2026.

ambcryptoHace 1 hora(s)

Crypto payments for gray-market peptides up by 700% in a year – Details

ambcryptoHace 1 hora(s)

Trading

Spot