The entire Electric Coin Company (ECC) team, the core developer behind Zcash (ZEC), has departed after alleging constructive discharge by Bootstrap, the nonprofit that governs the firm.
This crisis arrives at a pivotal time for the privacy-focused cryptocurrency ZEC, which has faced market headwinds this year. So far in 2026, the altcoin has dropped by over 18%.
Governance Conflict Prompts ECC Team’s Departure
For context, Bootstrap is a 501(c)(3) nonprofit created in 2020 to govern ECC and support the Zcash ecosystem. However, recent developments have highlighted growing governance issues.
In a recent post on X (formerly Twitter), Josh Swihart, now the former CEO of ECC, announced the team’s exit. Swihart alleged that a majority of the Bootstrap board, including Zaki Manian, Christina Garman, Alan Fairless, and Michelle Lai (collectively referred to as ZCAM), has become misaligned with Zcash’s original mission.
“Over the past few weeks, it’s become clear that the majority of Bootstrap board members (a 501(c)(3) nonprofit created to support Zcash by governing the Electric Coin Company), specifically Zaki Manian, Christina Garman, Alan Fairless, and Michelle Lai (ZCAM), have moved into clear misalignment with the mission of Zcash. Yesterday, the entire ECC team left after being constructively discharged* by ZCAM,” he wrote.
Constructive discharge occurs when an employer creates working conditions so objectively intolerable that a reasonable employee would feel compelled to resign. Under US labor law, such resignations “may be found not to be voluntary.”
“The terms of our employment were changed in ways that made it impossible for us to perform our duties effectively and with integrity,” Swihart added.
Nonetheless, the former ECC team plans to found a new company, keeping their focus on “building unstoppable private money,” according to Swihart. He also affirmed that the Zcash protocol itself remains unaffected, as the dispute centers on governance rather than its technical side.
“This decision is simply about protecting our team’s work from malicious governance actions that have made it impossible to honor ECC’s original mission,” Swihart remarked.
Zcash founder and former ECC CEO Zooko Wilcox also addressed the situation. He stressed that the governance dispute does not impact the Zcash network. He reiterated that the protocol remains open source, secure, and permissionless.
Wilcox additionally expressed personal confidence in the integrity of the Bootstrap board members named in Swihart’s statement, while stopping short of taking a position on the dispute.
“None of it involves me or Shielded Labs, and it’s not my place to opine on it,” he said. “I’ve worked closely with Alan Fairless, Zaki Manian, and Christina Garman for more than 10 years, through many intense and difficult situations, and with Michelle Lai for about 5 years. Based on my experiences, I believe them all to be people of exceptionally high integrity.”
This dispute follows a series of leadership changes across the ecosystem. Swihart became CEO in December 2023, following the founder Zooko Wilcox’s stepdown. A year ago, Peter Van Valkenburgh resigned from the Zcash Foundation board.
Furthermore, last month, the team implemented several organizational changes aimed at reducing internal friction and positioning “ECC for continued success in 2026 and beyond.”
ZEC Market Performance Amid Governance Turmoil
The governance crisis is unfolding as ZEC faces broader market challenges. In late 2025, the altcoin recorded a notable rally, standing out amid a wider market downturn.
Growing interest and demand for privacy-focused assets pushed ZEC’s valuation higher. According to CryptoRank data, ZEC surged by 816.7% in 2025, marking its strongest annual performance since 2017.
However, the coin has come under downside pressure in 2026. ZEC is down approximately 18% year-to-date. Additionally, BeInCrypto Markets data showed the token has declined by around 16% over the past 24 hours. At press time, it traded at $409.79.
ZCash (ZEC) Price Performance. Source: BeInCrypto Markets
That said, the latest drop is not isolated. The broader cryptocurrency market has also experienced a nearly 3% correction during the same period. Nevertheless, the departure of the development team may have weighed on the short-term market sentiment around ZEC.
Still, a market watcher explained that recent governance issues have not affected the Zcash protocol, its privacy features, or network operation. It frames the ECC team’s departure as a principled decision rather than abandonment.
“The original ECC team walked away rather than compromise the mission of building unstoppable private money….Zcash was designed to outlive companies, boards, and personalities. This moment proves it. The chain keeps running. The cryptography keeps working. The vision stays intact. Short-term turbulence is the price of long-term credibility. And credibility is bullish,” the market watcher wrote.
As the situation continues to develop, market participants are closely watching how governance clarity and development continuity evolve across the Zcash ecosystem.
