Zcash developers executed an emergency network response after researchers disclosed a critical soundness bug in the Orchard shielded pool that could have allowed unlimited, undetectable counterfeit ZEC to be created inside Orchard. The flaw was reportedly discovered on May 29 by researcher Taylor Hornby during a commissioned audit, and Shielded Labs said a working exploit was reproduced in a local test environment. In response, engineers privately coordinated a soft fork that disabled Orchard transactions, followed by the NU6.2 hard fork that restored Orchard with a corrected circuit.
After the fix, Shielded Labs proposed an additional Zcash upgrade aimed at letting anyone verify that the total ZEC supply was not secretly inflated before remediation. Although the company said there is no cryptographic way to prove the bug was never exploited prior to the patch, the Zcash Foundation stated that turnstile accounting showed the overall supply remained intact and that it had found no evidence of unauthorized value creation. The disclosure also triggered volatility in ZEC and renewed debate over the centralization of Zcash's emergency response process and the auditability limits of privacy-preserving shielded pools.

Track how attackers are adapting to this technology.
5 events from the most recent confirmed update back to the earliest known activity.
The Zcash Foundation said the network’s turnstile accounting showed the total supply remained intact and that there was no evidence of unauthorized value creation. This statement addressed concerns that the Orchard flaw might have been exploited before the fix.
Shielded Labs proposed a further Zcash network upgrade so anyone can verify that the ZEC supply was not secretly inflated before the Orchard bug was fixed. The proposal followed disclosure of the vulnerability and concerns that there is no cryptographic way to prove the flaw was never exploited prior to remediation.
On June 3, Zcash re-enabled Orchard by deploying the NU6.2 hard fork with a corrected circuit. This hard fork served as the remediation step following the earlier emergency soft fork.
On June 2, Zcash engineers privately coordinated an emergency response and disabled Orchard transactions through a soft fork. This step was taken to contain the critical vulnerability before a full fix was deployed.
On May 29, researcher Taylor Hornby discovered a critical soundness vulnerability in Zcash’s Orchard shielded pool during a commissioned audit. Shielded Labs said the flaw could have allowed unlimited, undetectable counterfeit ZEC to be created within Orchard, and Hornby produced a working exploit in a local test environment.
Vulnerabilities, threat actors, malware, products, organizations, and breaches Mallory has linked to this story.
Follow how adversaries are adapting to this technology, and where it touches your stack today.
6 references tracked. Mallory keeps watching after this page renders.
schneier.com
Open sourcescworld.com
Open sourcesecurityaffairs.com
Open sourcetradingview.com
Open sourcethedefiant.io
Open sourcecryptotimes.io
Open sourceMap indicators from this story to your assets and identify affected systems in minutes.
Every observed campaign, victim, and pivot linked to actors named in this story.
Malware, exploits, and IOCs connected to the activity described here.
YARA, Sigma, and Snort rules deployed to your SIEM as soon as they’re published.
Get matching new stories delivered to your team as they break — not the next morning.
Ask questions about this story and take action on the answers.