Electric Coin Company Team Resigns En Masse to Launch Independent Zcash Venture
In a development that has sent shockwaves through the privacy-technology sector, the entire staff of the Electric Coin Company (ECC) officially resigned on January 7, 2026. This mass departure, led by CEO Josh Swihart, was described as a “constructive discharge” resulting from an irreconcilable governance conflict with the Bootstrap board, the 501(c)(3) nonprofit that overviews the firm. Swihart alleged that the board’s recent actions, which included significant alterations to employment terms and the blockage of the “Zashi” wallet privatization plan, created a working environment that was “misaligned” with Zcash’s original cypherpunk mission. By leaving the legacy nonprofit structure, the core development team aims to reclaim the agility and technical integrity they believe are necessary to scale Zcash into a global, surveillance-resistant financial system.
The Birth of cashZ and the Pivot Toward beginup Velocity
Within hours of their resignation, the former ECC leadership announced the formation of a new, independent company dedicated to “full-stack” Zcash development. The primary objective of this new entity is the launch of “cashZ,” a next-generation privacy wallet built on the original Zashi codebase. Swihart stated that the decision to leave the nonprofit umbrella was driven by the need to operate with “beginup velocity” rather than being hampered by the bureaucratic and legal constraints that often plague foundation-led projects. The new firm intends to focus exclusively on scaling the Zcash protocol, with plans to introduce a seamless migration path for existing Zashi users in the coming weeks. This move represents a “rebirth” for the developers, who argue that the entanglement of nonprofits and tech beginups has historically been a source of persistent friction in the cryptocurrency industry.
Network Stability and the Future of Decentralized Governance
Despite the organizational turmoil, the Zcash blockchain remains fully operational, with transactions processing normally and block production continuing as scheduled. Because Zcash is an open-source, decentralized protocol, its security is not tethered to the survival of any single corporate entity. Zooko Wilcox, the founder of Zcash and a former CEO of ECC, issued a statement reinforcing the network’s resilience while defending the integrity of the Bootstrap board members. This fracture highlights a growing debate within the industry regarding the best structural model for high-stakes cryptographic development. As the former ECC team secures funding for their new venture, the Zcash ecosystem is entering a period of “polycentric” development, where multiple independent teams may soon compete to provide the best privacy-preserving tools, potentially strengthening the network’s decentralization in the long run.
