Researcher who found Zcash’s bug with AI adds Monero to his audit queue | Crypto Regulation News
Crypto regulation news: Researcher who found Zcash’s bug with AI adds Monero to his audit queue. This update explains what changed, why it matters for the crypto market, and what investors, exchanges, and blockchain companies should watch next.
Crypto Regulation Update
Taylor Hornby, the security engineer who used Anthropic’s Opus 4.8 AI model to find a critical bug in Zcash, says privacy coin Monero is among the tokens he intends to audit next.Asked on X whether he could look for flaws in Monero and other private cryptocurrencies, Hornby replied, “Absolutely! I’ll add Monero to my queue of things to audit.” Monero, which trades under the ticker XMR, is among the largest privacy-focused cryptocurrency and hides transaction details by default compared to Zcash, where users can either either transparent or shielded addressed.Hornby found the Zcash flaw on May 29. The bug, in the blockchain’s Orchard privacy pool, had gone undetected since May 2022 and could have let an attacker mint unlimited, undetectable counterfeit ZEC. Shielded Labs, a nonprofit developer on the network, disclosed it on Thursday and pushed through an emergency fix by June 1. Zcash fell 38% over the following 24 hours amid fallout and concerns about a hacker possibly stealing money from the shielded pool – without leaving any detectable trace – over the past few years.Hornby, hired by Shielded Labs in April to find protocol bugs before attackers could, said he reported the flaw rather than exploit it because the Zcash developers were “like family” and he could “not live with that kind of betrayal.”He plans to apply for a Zcash coinholder grant to fund further work.
Why This Crypto Regulation News Matters
First, this development may affect exchanges, token listings, stablecoins, compliance rules, and market sentiment. In addition, it may influence licensing, reporting requirements, and future enforcement actions. As a result, traders and investors should watch the next legal and policy steps closely.
What to Watch Next
Watch for follow-up statements from regulators, court filings, exchange responses, and policy updates. In particular, any new guidance on licensing, enforcement, or stablecoin rules could have a direct impact on the broader crypto market.
