Zipcoin Shuts Down Following Codebase Breach, Plans Token Sale

Zipcoin, an Ethereum-based project, has officially shut down as of October 22, 2026, following a serious security breach that compromised its codebase. This incident marks the second breach in less than a week, with the project's token, ZC, plummeting by 84% in value shortly after the announcement.

The decision to cease operations was communicated via a post on X from the project's account, @zipcoincash. The breach was identified on October 21, just days after an earlier incident on October 15, which resulted in the loss of approximately 1.1% of ZC's total supply due to an attack linked to UNCX. The stolen tokens were quickly sold on the market, prompting the Zipcoin team to buy back some of the tokens, a detail that was only revealed in the shutdown notice.

With a total supply of 1 billion tokens, the first hack resulted in about 11 million ZC entering circulation. Currently, the Zipcoin team retains control of 2.2% of the total supply, equating to around 22 million tokens, which they plan to sell after providing a brief exit window for existing holders.

Zipcoin's journey was notably brief, having launched in late September and reaching a market capitalization of around $40 million before its abrupt closure. The project was inspired by a fictional currency from Vitalik Buterin's novel, Snowmoon, although it emphasized its independence from Buterin.

The project's features included Privacy Pools for shielded transactions and a mechanism for users to burn ZC tokens to post messages on-chain. The fallout from the breaches raises questions about the project's transparency and the implications for its holders, especially regarding the buyback strategy and the future of similar projects.