Key facts
- Arthur Hayes sold his entire Zcash (ZEC) holdings.
- The sale followed disclosures about the Zcash Orchard Pool vulnerability.
- Hayes stated the vulnerability "could have been exploited to undetectably create an unlimited amount of counterfeit ZEC within Orchard."
- He declared 'the Holy Trinity is dead,' ending his ZEC, NEAR, and HYPE trade.
- Hayes confirmed he still holds Worldcoin (WLD) as an AI-linked investment.
- ZEC price fell over 45% in 24 hours following the news.
Arthur Hayes, co-founder of BitMEX, announced via X that his fund, Maelstrom, has sold its entire position in Zcash (ZEC). This decision was prompted by new disclosures surrounding a critical vulnerability in Zcash's Orchard Pool, discovered on May 29 and remediated by June 2. The vulnerability, described as "The Orchard Counterfeiting Vulnerability," could have allowed for the undetectable creation of unlimited counterfeit ZEC. While Zcash developers emphasized that there is no evidence of exploitation and user funds are safe, the inability to cryptographically prove that counterfeiting never occurred led Hayes to exit. He stated, "The privacy from AI, govt, big tech narrative demands perfection not improbability." This sale marks the end of his "Holy Trinity" trade, which previously included HYPE and NEAR, but Hayes confirmed he still holds Worldcoin (WLD) as his AI-linked investment. The ZEC price experienced a significant decline, falling over 45% in 24 hours following the news and Hayes' announcement.