The entire Electric Coin Company (ECC) team, the driving force behind the privacy-focused cryptocurrency Zcash, has severed ties with Bootstrap, a nonprofit organization formed to support the token. This abrupt departure stems from what ECC CEO Josh Swihart describes as a governance breakdown that rendered the ECC’s operations untenable.
In a statement shared on X, Swihart elaborated that, in recent weeks, it became increasingly evident that the majority of Bootstrap’s board members had diverged significantly from the mission of Zcash. This group, which Swihart collectively referred to as “ZCAM,” includes names like Zaki Manian, Christina Garman, Alan Fairless, and Michelle Lai.
Swihart characterized the situation as a direct consequence of the board’s employment policy changes, stating, “Yesterday, the entire ECC team left after being constructively discharged by ZCAM. In short, the terms of our employment were changed in ways that made it impossible for us to perform our duties effectively and with integrity.”
This departure marks a notable escalation in the internal tensions of a support structure that has historically depended on a limited number of specialized organizations to finance and coordinate the development of Zcash. Although specific details about the governance issues or employment terms remain confidential, Swihart framed the exit as a defensive maneuver aimed at safeguarding the Electric Coin Company’s ability to fulfill its mission.
“We’re founding a new company, but we’re still the same team with the same mission: building unstoppable private money,” stated Swihart. In his remarks, he reassured stakeholders that the Zcash protocol remains unchanged, emphasizing, “This decision was simply about protecting our team’s work from malicious governance actions that made it impossible to honor ECC’s original mission.”
Zooko Wilcox, the founder of Zcash, also commented on the unfolding drama, distancing himself and Shielded Labs from the conflict. He sought to assure the community that the operational integrity of the Zcash network remains intact. “Big drama in one (or two now?) of the many Zcash support orgs,” he wrote on X, emphasizing, “The Zcash network is open source, permissionless, secure, and private, and nothing that happens in this conflict can change that.”
Wilcox further acknowledged the integrity of the board members named by Swihart, indicating that such personal relationships and trust play significant roles in governance disputes within the ecosystem. “I’ve worked closely with Alan Fairless, Zaki Manian, and Christina Garman for more than 10 years, and with Michelle Lai for about 5 years. In my experience, they are all people of exceptionally high integrity,” he affirmed.
Bootstrap Board Responds
[UPDATE:] In the wake of Swihart’s announcement, Bootstrap’s board released its own statement framing the dispute as one related to governance and legal constraints surrounding a proposed transaction involving Zashi. They expressed regret over the departure of the ECC team but clarified that the disagreement centers around structural issues, rather than the core mission of Zcash.
Bootstrap emphasized its role as a 501(c)(3) public-benefit nonprofit, which comes with specific legal and fiduciary obligations regarding asset structure and transactions. The board noted that they had been exploring potential external investments and structural changes to privatize Zashi, while ensuring compliance with U.S. nonprofit laws to preserve Zcash’s long-term mission.
“There is nothing wrong with for-profits,” the statement read, advocating for an approach that could attract significant investment to enhance Zcash and improve user experience. However, they underscored the reality of Bootstrap and ECC’s nonprofit constraints.
The board cautioned that the most recent proposal might introduce legal and political risks to the broader ecosystem, warning that it could expose the network to vulnerabilities from politically motivated attacks. They stressed the potential consequences, including donor lawsuits and scenarios where Zashi could be reverted back to ECC, representing a threat not only to the parties involved but to the entire Zcash ecosystem.
In conclusion, they reiterated, “This is not a disagreement about Zcash’s mission, which remains unchanged. It is about compliance with the legal and fiduciary obligations, ensuring Bootstrap’s assets remain dedicated to the intended mission.”
At press time, the ongoing drama had impacted the market, with ZEC trading at $408.57.
