Zcash developers exit ECC after board dispute and launch new company

A major governance shake-up has rattled the Zcash ecosystem after a dispute between the Electric Coin Company and its nonprofit overseer involving developers became public.

Mass resignation at Electric Coin Company

The entire staff of Electric Coin Company (ECC), the core team of developers behind the privacy-focused blockchain Zcash, resigned on Wednesday following a structural dispute with its parent nonprofit Bootstrap. CEO Josh Swihart disclosed the move on X, pointing to a governance clash with the majority of the Bootstrap board of directors, which oversees ECC.

Bootstrap is a 501(c)(3) nonprofit created to govern ECC and support the broader Zcash ecosystem. However, in his public statement, Swihart singled out board members Zaki Manian, Christina Garman, Alan Fairless, and Michelle Lai as being misaligned with what he described as the protocol’s mission. He stressed that the blockchain protocol itself remains fully operational and unaffected by the internal personnel changes.

Swihart wrote that “yesterday, the entire ECC team left after being constructively discharged by ZCAM.” According to him, the terms of employment were altered in ways that made it “impossible for us to perform our duties effectively and with integrity.” That said, he did not provide specific contractual details in the initial statement.

Under guidance from the U.S. Department of Labor, constructive discharge refers to a resignation that is not truly voluntary because the employer has created a hostile work environment or exerted pressure that effectively forces employees to quit. Moreover, it typically involves severe and significant changes to core employment terms, rather than minor disputes or routine restructuring.

In the same post, Swihart said the zcash developers who left ECC are already forming a new company focused on what he called “unstoppable private money.” However, he did not disclose the new entity’s name, funding structure, or jurisdiction, leaving open questions about how it will interact with existing ecosystem organizations. The Block reported that it has reached out to Swihart for further comment on the situation.

Uncertainty for Zcash roadmap

The abrupt ECC team resignation introduces fresh uncertainty around the project’s medium-term roadmap, particularly after a major internal reorganization announced on Dec. 1. That plan consolidated core protocol and mobile engineering teams under a single lead while unifying all marketing and communications functions. The stated goal was to align development more closely with user experience from the Zashi wallet and reduce operational friction.

However, the new company formation led by former ECC staff raises questions about the division of responsibilities across the ecosystem. Observers are now watching how governance, funding, and technical leadership will be apportioned between Bootstrap, the Zcash Foundation, and the yet-unnamed startup. This realignment may complicate coordination around upgrades and longer-term technical milestones.

The latest departures follow a series of senior leadership changes around Zcash in recent years. Swihart ascended to the CEO role in December 2023 after longtime project leader Zooko Wilcox stepped down following eight years at the helm. Moreover, Peter Van Valkenburgh resigned from the Zcash Foundation board in January 2025, adding to turnover at key ecosystem institutions.

Reorganization after a breakout market phase

The Dec. 1 ECC reorganization came on the heels of a breakout period for the privacy-focused blockchain. On Nov. 7, ZEC surpassed a $10 billion market capitalization, reclaiming a top-20 ranking by overtaking Hyperliquid. At the time, investor Arthur Hayes highlighted in November that ZEC had become the second-largest liquid asset in Maelstrom‘s portfolio behind bitcoin, after gaining roughly 750% since October.

That said, ZEC’s price has cooled since the peak. At last check, the token was trading around $456, down nearly 8% over the past 24 hours. ZEC remains up about 11% over the past 30 days, but it is still roughly 92% below its October 2016 all-time high of $5,941.80, underscoring the volatility of the zcash privacy cryptocurrency market.

The current governance crisis, combined with earlier leadership exits and recent structural changes, has intensified zcash ecosystem uncertainty. While the protocol continues to function and a new team is forming to carry forward development, investors and users now face elevated questions about long-term stewardship, funding stability, and the project’s strategic roadmap.