Zcash (ZEC) Privacy Under Scrutiny as Arkham Reveals More Than Half of Transactions De-Anonymized

COINOTAG News reports that SlowMist founder Yu published an Arkham-powered assessment of Zcash (ZEC), noting that more than half of Zcash transactions can be traced. This confirms that Zcash privacy remains opt-in, not default, a pattern observed during prior cycles of privacy-coin scrutiny. z-addresses offer strong privacy, while t-addresses are transparent, guiding regulatory expectations for exchanges and wallets.

From a risk and compliance perspective, Zcash’s opt-in model provides a pragmatic balance between confidentiality and oversight, unlike Monero, which enforces default privacy. The privacy-by-default vs opt-in privacy distinction informs risk controls for institutions and platform operators regarding data disclosure.

Yu also notes that the majority of Zcash activity on mainstream platforms uses t-addresses, signaling a small privacy-savvy segment. Relative to Monero’s private-by-default approach, Zcash offers a calibrated privacy design with potential for broader adoption in regulated markets as platforms seek compliance-friendly ZEC exposure.