Arthur Hayes dumps zcash holdings after Orchard Pool vulnerability revealed
Analysis
Price Impact
HighArthur hayes, a prominent figure in the crypto space, has dumped his entire zcash holdings due to a critical vulnerability. this, combined with a significant price drop (over 40%) and the revelation of a bug that could have led to unlimited zec minting, indicates a severe loss of confidence and potential for further downside.
Trustworthiness
HighPrice Direction
BearishArthur hayes selling his entire position, coupled with the discovery of a major vulnerability that undermined supply integrity and caused a >40% price drop, strongly suggests a bearish outlook for zec in the short to medium term. hayes himself mentioned he might buy back at lower prices if his concerns are proven unfounded, indicating an expectation of further declines.
Time Effect
ShortThe immediate dump by arthur hayes and the sharp price drop indicate a short-term impact. while the long-term outlook depends on whether the vulnerability's implications are fully understood and resolved, the market's immediate reaction points to a short-term bearish trend.
Original Article:
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Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Arthur Hayes dumps zcash holdings after Orchard Pool vulnerability revealed Hayes said he would reconsider his stance if his assumptions that an exploit is still possible prove to be incorrect. By Olivier Acuna | Edited by Sheldon Reback Jun 5, 2026, 11:57 a.m. 1 min read Make preferred on Arthur Hayes dumped all his zcash holdings. (CoinDesk) What to know : Arthur Hayes, the chief investment officer of Maelstrom, said he sold his entire zcash position after a critical vulnerability was disclosed in the network’s Orchard Pool. The bug, revealed by Shielded Labs and present since 2022, could have allowed unlimited ZEC to be minted. The token slumped more than 40%. Hayes said the incident undermined his confidence in ZEC’s supply integrity but added he may buy back in if his concerns prove unfounded. Arthur Hayes, chief investment officer of Maelstromfund, said he liquidated his entire zcash (ZEC) position after a developer disclosed a potential critical vulnerability in the network's Orchard Pool. Hayes, who previously championed the privacy token, said on X that while he believed it was extremely unlikely that any minting would take place, it could not be cryptographically proven impossible. The now-plugged vulnerability was disclosed by Shielded Labs , which said a major issue went undetected for four years and could have allowed a hacker to print unlimited counterfeit tokens, damaging trust in the crypto’s supply and its value. The token slumped following the announcement and was recently down 42% over 24 hours. “I read about the exploit yesterday, and didn't appreciate how it violated my narrative mental map,” said Hayes. “The 30% dump made me rethink, and I had to take profit on the entire position.” The vulnerability, present since 2022, was discovered on May 29 and fixed June 1, Shielded Labs said. Hayes, who also co-founded the BitMex exchange, said he would reevaluate his stance moving forward and that, if his assumptions were proven incorrect, he would buy ZEC again “hopefully at lower prices.” Blockchain analytics and intelligence firm Arkham wrote on X that one large investor lost over half the value of his $174 million ZEC stash. “He hasn’t sold ZEC for 6 months. Ouch,” said Arkham. Cryptocurrency Privacy More For You Crypto's worst week since July 2024 deepens as bitcoin, ether near critical price levels By Oliver Knight , Saksham Diwan | Edited by Sheldon Reback 1 hour ago Crypto is on course for its worst week since July 2024, with the ether price approaching a critical support as a zcash exploit and AI capital rotation pile on the pressure. What to know : Bitcoin lost nearly 15% this week and ether more than 17%, crypto's worst weekly performance since July 2024, against a backdrop of the lowest monthly spot trading volume since October 2023. Privacy coin zcash crashed more than 30% after a security researcher uncovered an exploit that could have minted unlimited... Read full story Latest Crypto News Bitcoin sentiment hit peak bearishness at recent lows, peak bullishness near tops 32 minutes ago Crypto's worst week since July 2024 deepens as bitcoin, ether near critical price levels 1 hour ago JPMorgan, Bank of America, Citi to start blockchain offensive with shared tokenized network 2 hours ago U.S. bitcoin, ether ETFs end record multibillion outflow streak 3 hours ago Here's what could happen if bitcoin breaks below $60,000 4 hours ago Bitcoin in danger of dropping to $60,000, with Zcash bulls turning their backs on ZEC 5 hours ago Top Stories Zcash plummets 38% as Shielded Labs reveals a major bug that went undetected for four years 6 hours ago Bitcoin plunges to near $62,000 as the AI trade unwinds, HYPE falls 14% 5 hours ago Crypto Clarity Act in spotlight for bad-actor provisions as Senate process grinds forward 16 hours ago Not all Ethereum layer 2s are dying, but many general-purpose chains no longer have a reason to exist 22 hours ago OCC chief says Democrats applying sole political pressure in World Liberty charter choice 17 hours ago Strategy's Saylor's explanation for bitcoin's slide isn't what bears think 23 hours ago