Dragonfly Partner Haseeb Clarifies the Impact of the Zcash Vulnerability

According to Huoxing Finance, Dragonfly partner Haseeb posted a tweet clarifying the recently patched vulnerability in Zcash. He stated that if the vulnerability had been exploited before being fixed (though the probability was extremely low), it would have manifested as the minting of counterfeit ZEC within the privacy pool. Attackers would have needed to sell quickly, but since the primary market trades transparent ZEC, they could not directly dump unshielded privacy ZEC on major exchanges. Consequently, losses would have been borne primarily by users holding privacy ZEC, with negligible impact on holders of transparent ZEC or price discovery. Haseeb emphasized that the Zcash team will introduce a new turnstile mechanism and a completely new privacy pool in the next upgrade to verify that the privacy pool has not been inflated. He also expressed strong confidence in formal verification technology, viewing it as a critical path forward for enhancing software security across the industry—particularly vital for privacy protocols.