Zcash loses over $5 billion after AI finds 4-year bug that could have created fake hidden coins

- Zcash just lost $5 billion because its own devs used Anthropic’s Claude to find a four-year-old bug that could have printed infinite fake coins. Yes, AI saved the project from itself, but the market didn’t care about the heroics; it cared about the fact that a privacy protocol’s "trustless" security relied on a loophole in its math. ZEC tanked 50% before recovering slightly, proving that when your entire value proposition is "you can’t see my money," finding out your money might be imaginary is a hard sell. The bug was patched before exploitation, which is comforting if you’re a developer and terrifying if you’re an investor who thought privacy meant safety. Arthur Hayes sold out, likely realizing that trusting a circuit’s secrecy is riskier than trusting a public ledger. Moonboys, take note: even your private bags aren’t safe from code audits.