- The entire Electric Coin Company team behind the development of Zcash has departed following changes in governance.
- A new company will be formed to continue the same privacy-focused mission.
- The Zcash protocol remains unchanged despite the turmoil in leadership and governance.
Electric Coin Company, the long-standing development organization for Zcash, is preparing to form a new company after a sudden, public split driven by disputes over governance.
According to public statements and reports, the entire Electric Coin Company team withdrew from its previous organizational arrangement with Bootstrap, the nonprofit established to support Zcash.
Notably, the departure was not presented as a routine resignation or a gradual transition.
Instead, company leadership described the situation as a breakdown in alignment that made continued collaboration impossible.
This move marks a significant turning point for one of the most recognized privacy-focused projects in the cryptocurrency space.
Zcash has long positioned itself as “private money,” and the organizational split highlights rising tensions between mission-driven development teams and nonprofit governance structures.
Governance conflict at the heart of the split
At the center of the dispute is Bootstrap — a 501(c)(3) nonprofit created to support Zcash through oversight of Electric Coin Company.
Josh Swihart, CEO of Electric Coin Company, publicly stated that a majority of Bootstrap’s board members were not acting in alignment with Zcash’s mission.
He specifically named Zaki Manian, Christina Garman, Alan Fairless, and Michelle Lai as key figures in that majority.
Swihart reported that governance changes enacted by the board in recent weeks altered the team’s employment conditions.
According to him, those changes made it impossible for the team to perform their duties effectively and with integrity.
As a result, the entire team left after what Swihart characterized as a constructive dismissal.
Constructive dismissal refers to situations where working conditions are changed so substantially that employees are effectively forced to resign.
The language used indicates the split was driven by governance actions rather than disagreements over technology or code.
The dispute also revealed confusion around roles and titles, and Swihart acknowledged that public listings naming him as Bootstrap’s executive director were outdated.
A new company, the same mission
Despite the breakup, Swihart emphasized that the departing team is not abandoning its core mission.
He confirmed that the former Electric Coin Company team plans to establish a new company.
The purpose of the new organization, he said, remains the creation of “uncompromising private money.”
This language echoes Zcash’s longstanding focus on privacy, resistance to censorship, and user sovereignty.
Importantly, Swihart and others stressed that the Zcash protocol itself is unaffected by the organizational changes.
The Zcash codebase is open source, and no single company owns or controls the network.
This distinction is critical for users and developers concerned about continuity and security.
Former Electric Coin Company CEO and Zcash founder Zooko Wilcox defended Bootstrap’s board and stated that Zcash remains permissionless and safe to use.
His response highlights the deep disagreement among leadership about the causes and implications of the split.
Market reaction: Zcash price decline
ZEC, the native token of the Zcash network, experienced a notable price drop following the announcement.
At the time of reporting, Zcash traded near $443.38, down about 10.3% on the day, erasing most of December’s gains.
The price decline reflects uncertainty about governance, leadership stability, and the project’s future direction.
Supporters of the departing team argued that separating from what they view as hostile governance could ultimately strengthen development.
They see the creation of a new company as a way to protect mission-driven work from the dynamics of nonprofit boards.
Critics, however, worry about fragmentation and the loss of institutional continuity.
This episode underscores broader challenges faced by decentralized projects that operate within hybrid structures combining nonprofits, companies, and open-source communities.
For users, developers, and stakeholders, the critical questions remain how governance will evolve and how continuity, security, and privacy commitments will be preserved as the situation unfolds.