Tuesday, January, 21, 2025

Zcash Security Audit Finds No New Critical Flaws After Review

Zcash audit finds no new serious flaws after Anthropic review while teams continue Orchard safeguards and Ironwood security work plan.
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Areeba Rashid

Areeba Rashid is a dedicated crypto news writer with a passion for making complex topics accessible to everyone. She covers the latest developments in the crypto world, including in-depth price analysis, helping readers stay informed and make sense of market trends.
  • Zcash audit by Anthropic found no new serious flaws after the Orchard disclosure update.
  • NU6.2 hard fork removed the Orchard vulnerability before shielded transactions resumed.
  • Wilcox said Ironwood could help users verify Zcash supply across active shielded pools.

Zcash returned to security focus after Anthropic completed a follow-up audit using its Mythos system. Founder Zooko Wilcox said the review found no new serious protocol flaws. The update followed the recent disclosure of an Orchard vulnerability inside shielded transactions.

Wilcox said Anthropic carried out the review for Shielded Labs. The audit followed the discovery of a flaw that could theoretically have allowed unlimited counterfeit ZEC creation. In a June 13 post on X, he thanked Anthropic for helping protect users.

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Zcash Orchard Flaw Response Moves Into Focus

The finding came more than a week after the ecosystem moved to contain the Orchard defect. Orchard is the blockchain’s main shielded transaction pool. Shielded Labs said the weakness could theoretically have allowed an attacker to create unlimited counterfeit ZEC.

The organization said earlier exploitation appeared unlikely. However, it said there is no cryptographic proof that the flaw was never used. That statement kept attention on the risk after the fix had been deployed.

Work on the response began before the flaw became public. Josh Swihart, founder of Zcash Open Development Lab, said developers first used a soft fork to disable Orchard transactions. The measure kept technical details confidential while teams prepared the next upgrade.

The NU6.2 hard fork went live on June 3. It removed the vulnerability before Orchard transactions were enabled again. The staged process allowed developers to reduce exposure while the ecosystem coordinated its response.

Wilcox previously said security researcher Taylor Hornby found the flaw on May 29. Hornby identified it during a targeted audit using Anthropic’s Opus 4.8 model. He reported the issue to Zcash Open Development Lab, which helped organize the fix.

Zcash Teams Continue Security Review After Upgrade

After the upgrade, contributors continued checking the protocol for other risks. Wilcox said Shielded Labs and other teams are focused on security-hardening work. He said further updates will be released as that effort moves forward.

Several groups remain involved in the review and response. Wilcox named the Zcash Foundation, Tachyon Group, Valar Group, Shielded Labs, and Zcash Open Development Lab. Their work now centers on follow-up audits, protocol review, and safeguards.

Wilcox also continued to support the Ironwood upgrade. He said Ironwood would let users verify the circulating supply by adding balances across active pools. The proposal is tied to efforts to strengthen confidence after the Orchard disclosure.

According to Wilcox, Ironwood would create a new place for shielded ZEC holdings. It would also restrict transactions that could involve counterfeit coins. The plan includes further security measures, including AI-assisted audits, though its timeline remains uncertain.

The disclosure also hit the ZEC market. The token lost more than 50% between June 4 and June 5 before rebounding to $478.70 on June 9. It later moved near $417 as investors reduced risk exposure amid rising United States-Iran tensions.

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