Winklevoss-Backed Zcash Treasury Plunges Nearly 40% on ZEC Privacy Bug Concerns
A major Zcash vulnerability triggered a sharp selloff in Cypherpunk Technologies, the Winklevoss-backed company that has bet heavily on the privacy coin. Cypherpunk shares fell 37% to 59 cents, their lowest since early March, after Zcash dropped about 37% in a day to around $329. The bug, disclosed by Shielded Labs, had gone undetected for four years and was found in an AI-assisted audit. An emergency fix was released, but investors were unsettled because it’s unclear whether the flaw was ever exploited. Cameron Winklevoss defended Zcash, saying bugs are inevitable in blockchain software and that researchers are improving network security. The selloff put Cypherpunk’s Zcash holdings underwater, since it bought 314,185 ZEC at an average price of $337. Gemini shares also slipped amid broader market weakness.
