# Zcash Price Drops as Reports Show Hackers Using Token to Move Stolen Funds

- URL: https://stocks.freetheai.org/news/zcash-price-drops-as-reports-show-hackers-using-token-to-move-stolen-funds-5538f1
- Published: 2026-10-17T16:37:42Z
- Category: crypto; sentiment: bearish; impact: medium
- Symbols: [COINBASE:ZECUSD](https://stocks.freetheai.org/symbols/COINBASE-ZECUSD)
- Written by our AI from expert market sources across the web for FreeTheAI Stocks, built by Vibhek Soni
- How write-ups are made: https://stocks.freetheai.org/how-we-write
- Not financial advice: https://stocks.freetheai.org/disclaimer

Zcash (ZEC) prices slipped after on-chain tracking revealed bad actors are actively routing stolen funds through the privacy-focused cryptocurrency. Security breaches linked to the private transactions include unauthorized transfers from hot wallets at exchange Bitget, compromised hardware wallets from reseller CryptoBilis, and a $12 million payment breach at Singapore-based Triple-A.

The illicit transfers highlight ongoing debates surrounding privacy tokens and regulatory compliance. Speaking at the Token2049 conference in Singapore, Gemini (GEMI) co-founder Cameron Winklevoss defended shielded transactions, arguing that mandatory identity checks expose users to severe personal security risks when corporate databases are breached. Former Coinbase (COIN) CTO Balaji Srinivasan called for zero-knowledge technology to replace standard document submission, framing Zcash as a decentralized private payment option alongside Bitcoin (BTC).

Market sentiment around Zcash remains heavily skewed toward the downside following a monthly drop of more than 17%. Traders and investors will be monitoring whether rising illicit transfer activity triggers further regulatory pushback or influences exchange listings for private digital assets.

## Key points

- Zcash (ZEC) fell following reports that bad actors are moving stolen crypto through its private network.
- Recent security breaches involving Zcash transfers include hot wallet exploits and a $12 million loss at Triple-A.
- Industry leaders at Token2049 defended privacy features, advocating zero-knowledge proofs over identity verifications.
- Zcash price has dropped over 17% over the past month amid extremely bearish retail market sentiment.

## Questions and answers

### Why is Zcash dropping?

Zcash fell after on-chain data showed hackers using its private shielded transactions to transfer stolen funds from multiple crypto security breaches.

### What security exploits were linked to Zcash transfers?

Exploits included unauthorized hot wallet transfers at Bitget, compromised hardware wallets from reseller CryptoBilis, and a $12 million breach at payment firm Triple-A.

### What did industry leaders say about Zcash privacy at Token2049?

Executives defended encryption, arguing traditional identity checks put user safety at risk during database leaks and suggesting zero-knowledge proofs as a safer alternative.