Controversy flared up over a post on X. Arkham claimed on the platform that it had succeeded in deanonymizing “more than half of Zcash’s shielded and unshielded transactions.” The firm took credit for labeling the individuals and institutions behind the majority of the data. However, the post was immediately flagged by X’s Community Notes, which pointed out that Z-address shielded transactions (z-to-z) had not been deanonymized, and that Arkham was only providing data for transparent transactions (about 80% of the total).

Arkham’s publication caused confusion about Zcash’s privacy capabilities by misleadingly mixing shielded and transparent transactions, aiming for clickbait. Zcash founder Zooko Wilcox-O’Hearn had to intervene to force the platform to partially retract its claim. After 18 hours of controversy, Arkham admitted that “z->z transactions are not accounted for in the 50% of Zcash transactions labeled,” confirming that they had not broken the privacy of shielded transactions, which represent approximately one-fifth of the network’s transactions.

This incident underscores the constant pressure on crypto privacy and the tendency of analytics firms to exaggerate their capabilities for the sake of publicity. The controversy serves as a reminder to the community about the importance of technical education, as Zcash’s shielded transactions (which are opt-in) remain cryptographically secure. Vigilance from users and developers will remain crucial against future attempts to misrepresent data.

Source: https://x.com/mineZcash/status/1998170389864947753

Disclaimer: Crypto Economy Flash News is prepared using official and public sources verified by our editorial team. Its purpose is to quickly report relevant facts within the crypto and blockchain ecosystem. This information does not constitute financial advice or investment recommendations. We recommend always verifying the official channels of each project before making related decisions.

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Filed under: News - @ December 9, 2025 10:28 pm