Zcash bug, Hayes exit and big SOL transfer roil crypto

Zcash developers released a patch on June 1 to fix a vulnerability in the Orchard shielded pool that a researcher said could enable counterfeit minting of ZEC. The team did not confirm whether attackers exploited the flaw before the update. Following the disclosure, ZEC fell about 41% and large holders reduced exposure.

Former BitMEX chief executive Arthur Hayes sold his entire ZEC holding after the Orchard disclosure. He posted on Twitter that “the Holy Trinity is dead.” Market records show the sale added to selling pressure during the price decline. ZEC has also recorded strong gains over the past year, rising roughly 500% year-over-year despite the recent drop.

Forward Industries moved 455,784 SOL-about $31.9 million at current prices-to a Coinbase Prime custody account. The company is the largest corporate holder of Solana token balances and its treasury has been reported as more than $1.13 billion underwater. SOL remains about 77% below its all-time high. Large transfers onto exchange custody accounts are monitored by market participants because those assets become more readily available to trade.

Several major U.S. banks, including JPMorgan and Citi, are working on a shared tokenized deposit network planned for 2027. The project would let regulated banks issue digital representations of customer deposits that can move on distributed ledgers. Proponents describe tokenized deposits as bank-backed on-chain dollar equivalents that could enable faster settlement and programmable features while keeping funds inside regulated banking rails.

Binance Research published a forecast that crypto exchanges could channel up to $5 trillion of new equity capital into global markets over the next five years through tokenized stocks and other tokenized securities. The report says tokenized equity products can cut paperwork and reduce cross-border frictions, potentially creating new paths for capital to flow through crypto trading venues.

Market participants are tracking further disclosures from Zcash developers, on-chain activity tied to Forward Industries’ SOL holdings, and regulatory and design decisions for tokenized deposits and tokenized equity products that will affect how much capital moves on-chain.