The Electric Coin Company (ECC), the primary development entity behind the privacy-focused cryptocurrency Zcash, has been effectively dissolved after its entire staff resigned on January 7, 2026. The mass departure was announced by CEO Josh Swihart, who cited a severe governance clash with the majority of the board of Bootstrap, the 501(c)(3) nonprofit that governs ECC.
Swihart named board members Zaki Manian, Christina Garman, Alan Fairless, and Michelle Lai (collectively referred to as ZCAM) as the source of the conflict. He described the situation as a "constructive discharge," a legal term where employment terms are altered so severely that employees are forced to resign. "The terms of our employment were changed in ways that made it impossible for us to perform our duties effectively and with integrity," Swihart stated on X.
The immediate market reaction saw the price of ZEC (Zcash) plunge roughly 7-8%, falling from around $480 to approximately $455, with 24-hour trading volume surging over 30% to around $800 million. The token has since recovered some ground but remains volatile.
Swihart emphasized that the Zcash protocol itself, being open-source and permissionless, remains unaffected and secure. The departing team plans to form a new, independent company to continue pursuing the original mission of building "unstoppable private money." Zcash founder Zooko Wilcox, while refusing to take sides, reassured users that the corporate dispute has no impact on the network's security or privacy assurances.
The crisis is the culmination of long-standing friction within Zcash's unique governance structure, designed to balance power between ECC, the Zcash Foundation, and Bootstrap. Disagreements had recently intensified over the future of the Zcash development fund, which allocates block rewards and is set to expire in late 2025. Swihart had publicly advocated for ending direct protocol funding in favor of grants to further decentralize the ecosystem.
This event follows a series of senior departures in the Zcash ecosystem, including Wilcox stepping down as ECC CEO in late 2023 and a prior internal reorganization at ECC in December 2025. The newly formed company will operate independently, while Bootstrap and the Zcash Foundation are expected to reassess how protocol development is funded and coordinated moving forward.
