Arthur Hayes Sells All ZEC, Declares ‘Holy Trinity’ Dead as Zcash Bug Triggers 30% Drop

Zcash is a cryptocurrency focused on private transactions. Its Orchard shielded pool, launched in May 2022, uses zero-knowledge proofs to conceal transaction information. The soundness bug could have allowed an attacker to mint unlimited counterfeit ZEC within the pool. Because of the system’s privacy design, it is impossible to rule out exploitation after the fact, directly undermining confidence in the 21 million-token supply cap and in privacy assets more broadly.

Shielded Labs said the bug was discovered on May 29, 2026. The Zcash Foundation activated the NU6.2 hard fork on June 3 to fix it, with no loss of funds reported. BitMEX co-founder Arthur Hayes sold all his ZEC on June 4. The price fell from $624 to $309 the following day, losing nearly 50% over 48 hours and triggering about $118 million in liquidations.