After discovering a major vulnerability in Zcash using an AI model, security engineer Taylor Hornby stated that the next step will be to include Monero (XMR) and other privacy coins in the audit list. As the Zcash incident continues to unfold, market attention to the security of privacy coin protocols is intensifying.
Monero has been placed in the audit queue.
Hornby recently stated on the X platform, in response to questions, that he will include Monero in his auditing process. Previously, he used Anthropic's Opus 4.8 model to discover a critical flaw in Zcash's privacy pool, Orchard.
Reports indicate that this vulnerability remained undiscovered until May 2022, theoretically allowing attackers to forge an unlimited number of ZECs without being detected. Shielded Labs discovered the issue on May 29 and initiated an emergency fix by June 1.
ZEC fell 38% in 24 hours.
Following the disclosure of the vulnerability, concerns arose that someone might have transferred funds from the shield pool over the past few years without leaving any detectable traces, and Zcash subsequently fell 38% within 24 hours.
- Vulnerability location: Zcash's Orchard privacy pool
- Potential consequences: An unlimited number of ZECs can be counterfeited.
- Timeline: Discovered on May 29, repaired before June 1
Hornby stated that he was hired by the nonprofit development organization Shielded Labs in April of this year to find protocol flaws before attackers could exploit them. After discovering the issue, he chose to report it to the development team rather than exploit the vulnerability for profit.
Privacy coin audits may continue to expand
Monero is one of the larger privacy coins currently available, hiding transaction details by default; in contrast, Zcash supports both transparent and masked addresses. Hornby's inclusion of Monero on its audit list suggests that the privacy coin sector may face more intensive external security scrutiny.
He also stated that he plans to apply for Zcash holder grants to support further research. As AI is used to uncover deeper protocol flaws, privacy networks and broader cryptographic systems are likely to undergo more frequent security audits.
