The entire team at Electric Coin Company (ECC), the main developer of Zcash (ZEC), has left the company after reporting so-called "constructive discharge" by Bootstrap, the nonprofit that governs the company.
This crisis comes at a critical time for ZEC, the privacy-focused cryptocurrency, which has faced significant market challenges this year. So far in 2026, the altcoin has seen a drop of over 18%.
Governance conflict leads to ECC team departure
To contextualize, Bootstrap is a 501(c)(3) nonprofit founded in 2020 to govern ECC and support the Zcash ecosystem. However, recent developments have highlighted growing governance challenges.
In a recent post on X (formerly Twitter), Josh Swihart, now former CEO of ECC, announced the team's departure. Swihart stated that the majority of the Bootstrap board, composed of Zaki Manian, Christina Garman, Alan Fairless, and Michelle Lai (collectively referred to as ZCAM), has moved away from Zcash's original mission.
"In recent weeks, it has become clear that the majority of the Bootstrap board of directors (a 501(c)(3) nonprofit created to support Zcash by governing Electric Coin Company), particularly Zaki Manian, Christina Garman, Alan Fairless, and Michelle Lai (ZCAM), has taken a position clearly at odds with Zcash's mission. Yesterday, the entire ECC team left the company after being subjected to constructive discharge* by ZCAM," he wrote.
Constructive discharge occurs when an employer creates working conditions that are objectively so intolerable as to force a reasonable employee to resign. Under U.S. labor law, such resignations "may not be considered voluntary."
"The conditions of our employment were changed in such a way as to make it impossible for us to effectively carry out our duties and maintain our integrity," added Swihart.
Nevertheless, the former ECC team plans to establish a new company, maintaining their focus on "building unstoppable private money," as stated by Swihart. He also confirmed that the Zcash protocol is not affected by the situation, as the dispute concerns governance and not the technical side.
"This decision is simply about protecting our team's work from malicious governance actions that have prevented us from honoring ECC's original mission," Swihart emphasized.
Zcash founder and former ECC CEO Zooko Wilcox has also commented on the situation. He highlighted that the governance dispute does not impact the Zcash network. He reiterated that the protocol remains open source, secure, and permissionless.
Wilcox also personally expressed confidence in the integrity of the Bootstrap board members mentioned in Swihart's statement, without taking a stance on the dispute itself.
"This entire matter does not involve me or Shielded Labs, and it is not my role to express an opinion on it," he stated. "I have worked closely with Alan Fairless, Zaki Manian, and Christina Garman for over 10 years, navigating many intense and difficult situations, and with Michelle Lai for about 5 years. Based on my experience, I consider all of them individuals of exceptionally high integrity."
This dispute comes after a series of leadership changes in the ecosystem. Swihart became CEO in December 2023, following the resignation of founder Zooko Wilcox. A year ago, Peter Van Valkenburgh resigned from the Zcash Foundation board.
Moreover, last month the team implemented several organizational changes aimed at reducing internal friction and putting "ECC in a position to continue its success into 2026 and beyond."
ZEC market performance amid governance turbulence
The governance crisis is unfolding precisely as ZEC faces broader market challenges. At the end of 2025, the altcoin recorded a significant rally, standing out during a period of general market decline.
Growing interest and demand for privacy-focused assets have driven ZEC's valuation higher. According to CryptoRank data, ZEC increased by 816.7% in 2025, marking the best annual performance since 2017.
However, the coin has faced downward pressure in 2026. ZEC has declined by approximately 18% since the start of the year. Additionally, BeInCrypto Markets data shows the token dropped by about 16% in the last 24 hours. At the time of publication, it was trading at $409.79.
That said, the recent drop is not isolated. The broader crypto market also experienced a nearly 3% correction during the same period. However, the departure of the development team may have impacted short-term market sentiment around ZEC.
Nevertheless, a market observer explained that the recent governance issues have had no impact on the Zcash protocol, its privacy features, or network functionality. The ECC team's exit is seen as a principled choice rather than an abandonment.
"The original ECC team left rather than compromise the mission to create unstoppable private money... Zcash was designed to survive societies, boards of directors, and personalities. This moment proves it. The chain continues to function. Cryptography still works. The vision remains intact. Short-term turbulence is the price of long-term credibility. And credibility is bullish," wrote the market observer.
As the situation evolves, market participants are closely watching how clarity on governance and the continuity of development will unfold within the Zcash ecosystem.
