Arkham Intelligence announces deanonymization of over 50% of Zcash transactions

Analysts reported the deanonymization of owners of 48% of the network’s incoming and outgoing data, as well as 37% of all balances. The U.S. authorities were identified as one of the largest holders of the privacy coin Zcash. In 2018, U.S. law enforcement seized $737,000 worth of the anonymous cryptocurrency from the creator of the darknet platform AlphaBay, Alexander Kazes.

Arkham Intelligence now allows anyone to track Zcash transactions, balances, addresses, set alerts for large transfers, and monitor user activity using artificial intelligence tools, the platform’s team announced.

Zcash creator Zooko Wilcox commented on the analysts’ report, stating that Arkham Intelligence could not have obtained data from shielded addresses, as such information “simply does not exist.” According to him, the report includes only those wallets whose owners voluntarily opted out of transaction privacy.

Zcash has existed since October 2016 and offers users the ability to conduct fully anonymous transactions. The main difference between Zcash and most cryptocurrencies lies in the use of a cryptographic technology known as zero-knowledge proofs (zk-SNARKs). This technology allows validating a transaction without revealing private information, including the sender/recipient’s identity or the transaction amount.

Earlier, analysts from the U.S. financial company Galaxy Digital stated that as the traditional finance market gradually converges with the digital asset space, Zcash has become the spiritual successor to Bitcoin.

See also: "Bitcoin rises to $92.6K ahead of possible Fed rate cut"

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