BitMEX co-founder Arthur Hayes announced on June 5, 2026, that he had fully exited his ZEC (Zcash) position, marking the complete dissolution of his 'Holy Trinity' investment portfolio unveiled just two weeks earlier. In a brief X post, he declared the trinity dead, while ZEC plunged more than 30% in the past day.
Trinity Collapsed in Two Weeks
On May 22, Hayes unveiled a three-asset framework: HYPE (Hyperliquid) for DeFi, ZEC for privacy, and NEAR (Near Protocol) for AI chain abstraction. On June 4, he sold all HYPE and NEAR, citing macroeconomic risks, rising energy costs, AI IPO competition, and political uncertainty. The next day, ZEC followed, ending the portfolio.
Orchard Pool Bug: A Three-Year-Old Soundness Flaw
The immediate trigger was a zero-knowledge proof soundness vulnerability in Zcash's Orchard pool. On May 29, security researcher Taylor Hornby discovered the flaw during a Shielded Labs audit. The bug, present since Orchard's launch in May 2022, could theoretically allow unlimited counterfeit ZEC creation without on-chain detection. Zcash Foundation responded with an emergency soft fork on June 2 and a NU6.2 hard fork on June 3 to fix the circuit. The foundation stated no evidence of exploitation and confirmed supply integrity—but the market panicked, wiping over 30% of ZEC's value.
Why Hayes Sold: Perfection, Not Probability
Hayes admitted the actual risk of exploitation was negligible, but he argued that Zcash's privacy narrative 'demands perfection, not just improbability.' Any theoretical cryptographic flaw, however unlikely, undermines the narrative's foundation. He only grasped the severity after the 30% crash forced a reassessment. His team will continue evaluating the thesis; if proven wrong, Hayes says he would buy back even at higher prices, adding 'privacy is priceless.' The only remaining public crypto position under Maelstrom is WLD (Worldcoin), with a sarcastic nod to 'Lord Elon' for a potential pump.