Zcash Team Quits: From $12B Success to 25% Freefall

Zcash experienced a sudden and dramatic shift on January 7, 2026, when the entire team of the Electric Coin Company (ECC) quit in a coordinated move. 

The mass departure followed a bitter governance dispute with the board of directors at Bootstrap, the nonprofit entity that oversees ECC operations. Such an event leaves the future of the world’s most prominent privacy coin at a critical crossroads, even while the protocol continues to process transactions without interruption.

Team Quits Due to “Constructive Discharge”

Josh Swihart, Chief Executive Officer of the Electric Coin Company, broke the news via social media. Swihart described the resignation not as a voluntary choice, but as a “constructive discharge.”

Over the past few weeks, it’s become clear that the majority of Bootstrap board members (a 501(c)(3) nonprofit created to support Zcash by governing the Electric Coin Company), specifically Zaki Manian, Christina Garman, Alan Fairless, and Michelle Lai (ZCAM), have moved into…

— Josh Swihart 🛡 (@jswihart) January 7, 2026

In a legal sense, the term describes a situation where an employer changes the working conditions so much that the staff feels they must quit. Swihart claimed the Bootstrap board changed employment terms in ways that prevented the team from working with professional integrity.

This conflict centers on a fundamental misalignment regarding the core mission of Zcash. Swihart specifically identified four board members, Zaki Manian, Christina Garman, Alan Fairless, and Michelle Lai, as the primary sources of discord. The CEO claimed these individuals moved away from the values that define the project. Rather than accepting the new conditions, the entire staff chose to walk away and form an independent company. Their new venture aims to continue the original pursuit: the creation of “unstoppable private money.”

A Conflict Caught Mid-Transition

Timing was everything, and this collapse hit during a critical transition. On December 1, 2025, just weeks before the mass resignation, ECC had announced a significant internal reorganization. Management aimed to merge core protocol and mobile engineering teams under unified leadership, syncing development with the Zashi wallet experience to cut operational friction.

Electric Coin Company’s announcement on December 1st, 2025.

Investors and users initially viewed the reorganization as a sign of maturity and focus. The project had recently seen a massive resurgence in market relevance. On November 7, as reported, Zcash eclipsed a $12 billion market capitalization, reclaiming a spot among the top 20 cryptocurrencies globally.

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Renowned investors like Arthur Hayes championed the asset, noting that ZEC had become the second-largest liquid holding in the Maelstrom portfolio, trailing only Bitcoin. In the months leading up to the split, the token’s price surged approximately 750% from its October lows.

Market Reacts to Leadership Instability

Unsurprisingly, the sudden loss of the engineering team shook investor confidence. Following Swihart’s announcement, the price of ZEC dropped nearly 25% within 24 hours. Zcash, which traded as high as $735 in November, fell to the $390 range. Despite the recent rally, long-term holders still feel the sting of history; Zcash remains roughly 92% below its all-time high of nearly $6,000 in October.

ZEC dropped below $400 after the news. Source: CoinMarketCap

However, market analysts point out that Zcash possesses a unique resilience. Unlike centralized corporate projects, Zcash exists as an open-source, decentralized protocol. Both Swihart and Wilcox emphasized that the network remains fully operational. Because no single entity owns the code, the blockchain continues to function as long as miners, validators, and users participate. The technical foundations, specifically zero-knowledge proofs, stay intact regardless of who sits in the ECC offices.

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