Crypto Token’s 50% Wipeout Shows Magnitude of AI-Hacking Threat

Zcash cryptocurrency fell approximately 50% after a critical vulnerability—undetected for over four years that could have enabled unlimited token counterfeiting—was uncovered by a security researcher using Anthropic's Claude Opus 4.8 AI model. The disclosure has heightened concerns across the crypto industry about AI accelerating the discovery of exploits, with Zcash co-founder Eli Ben-Sasson warning that 'bad guys will find the bugs first' in future cases. The incident underscores a growing arms race between AI-aided defenders and attackers in decentralized finance, where billions have already been lost to hacks.