The privacy-focused cryptocurrency Zcash is entering a new era of decentralization following a major internal shakeup. Josh Swihart, CEO of the Electric Coin Company (ECC), announced on Wednesday that the entire ECC development team has resigned from its parent nonprofit, Bootstrap, due to deep-seated disagreements with the board.
The split marks a significant turning point for the project, as the team that originally built and maintained Zcash plans to continue their work under a brand-new, independent entity.
Internal Governance Conflict Leads to Mass Departure
The mass resignation stems from what Swihart described as a “clear misalignment” with the Bootstrap board members. Specifically naming Zaki Manian, Christina Garman, Alan Fairless, and Michelle Lai, Swihart alleged that recent changes to employment terms and board actions made it impossible for the team to operate with integrity or fulfill ECC’s original mission.
In a public statement, Swihart characterized the move as a protective measure against “malicious governance actions.” Despite the friction, the team remains committed to the core vision of the project. “We’re founding a new company, but we’re still the same team with the same mission: building unstoppable private money,” Swihart noted, signaling that the core developers are not abandoning the Zcash ecosystem, but rather shifting their corporate structure to escape board interference.
Network Security and Market Impact
While the corporate drama has captured headlines, both Swihart and former CEO Zooko Wilcox emphasized that the Zcash protocol itself remains unaffected. Because Zcash is built on public, open-source code, no single entity—including the ECC or Bootstrap—has absolute control over the network. The protocol relies on a global network of miners, validators, and node operators to function, ensuring that transactions continue to process as usual despite the internal rift.
Zooko Wilcox, who stepped down as CEO in 2023, took to social media to defend the integrity of the Bootstrap board members while reinforcing the network’s resilience. He reminded users that the “permissionless and secure” nature of Zcash means that internal conflicts cannot compromise the privacy or safety of the funds on the blockchain.
However, the market reacted with immediate volatility. Following the news, Zcash (ZEC) saw a decline of nearly 7%, with prices dipping toward the $461 mark. This price action follows a period of significant growth for the token, which had previously spiked to $723 during a privacy-coin rally in late 2025. While the long-term impact on the ZEC ecosystem remains to be seen, the transition to a new development firm suggests that the race for private digital cash is far from over.
