Zcash Plummets as AI Reveals Four-Year Vulnerability

Eli Ben-Sasson, co-creator of Zcash, had anticipated human adversaries when he helped develop the cryptocurrency nearly a decade ago. However, he didn't expect machine intelligence to expose a flaw that had evaded years of expert scrutiny.

A recent security researcher used Anthropic's Claude Opus 4.8 to uncover a critical vulnerability in Zcash that went undetected for more than four years. After the issue was disclosed on June 4, the token plummeted about 50% as investors reassessed its security.

The discovery highlights the growing threat of AI-hacking and the limitations of human judgment in identifying vulnerabilities. Ben-Sasson's initial concerns about human adversaries now seem less relevant in light of this development.