Arthur Hayes, the chief investment officer at Maelstrom, has liquidated all his holdings in zcash (ZEC) following the disclosure of a serious vulnerability in the network's Orchard Pool. This flaw, which was uncovered by Shielded Labs, has been a risk since 2022, potentially allowing for unlimited minting of ZEC tokens and causing a significant drop in the cryptocurrency's value.
After the vulnerability was revealed, the price of ZEC plummeted by over 40%, prompting Hayes to reconsider his investment strategy. Previously a supporter of the privacy-oriented token, he expressed shock at the implications of the exploit, stating that while he thought the chances of minting were low, he could not guarantee it was impossible.
Hayes explained that the incident affected his confidence in the integrity of ZEC's supply, leading him to take profits from his entire investment. He noted, “After reading about the exploit yesterday, I was taken aback by how it contradicted my previous understanding.”
