- Bootstrap says a recent board dispute arose from legal limits on nonprofits seeking external investment.
- Electric Coin Company separated from Bootstrap, citing “malicious governance actions.”
- The board discussed outside investment and possible privatization of the Zashi wallet, while consulting legal counsel, per an announcement.
- Zashi’s source code is publicly available, and Bootstrap warned a transfer could create legal risks and require assets to be “transferred back to ECC.” See the wallet code on GitHub.
- Market moves followed: ZEC fell about 16% to roughly $406, while large holders bought about $914,000 and new wallets added about $1.74 million, per data on Nansen.
Bootstrap said a governance dispute that prompted key board departures stemmed from the legal constraints nonprofits face when seeking outside investment. The split followed the decision by the developer Electric Coin Company to separate from Bootstrap and form a new company, with ECC citing “malicious governance actions.”
Bootstrap said board members had discussed “external investment and alternative structures to privatize Zashi, while working with legal counsel to ensure any path forward would comply with U.S. nonprofit law, remain consistent with the long-term mission of ZCash, and not jeopardize the broader Zcash community,” in an announcement shared by board member Zaki Manian and posted to a statement site at weareallzashi.org.
The wallet, called Zashi, was developed by ECC and launched on mobile in early 2024. Its source code is public on GitHub, consistent with Zcash’s open-source model under which no single entity controls the protocol.
Bootstrap framed the core disagreement around its fiduciary and legal duties as a U.S. 501(c)(3) nonprofit. The group warned that certain deals could create “new vulnerabilities for politically-motivated attacks on Zcash,” including donor lawsuits that might force assets to be “transferred back to ECC.” Bootstrap said such risks could “jeopardize the entire Zcash ecosystem” and stressed assets must “serve the public good” and not be “captured for private benefit.”
The board also noted limits on fundraising under a nonprofit model and observed that a for-profit path could attract more capital, saying “There is nothing wrong with for-profits, and such a project done well can be an excellent way to bring a large amount of outside capital into making Zcash and privacy great and user-friendly.”
Market data showed the ZEC token fell roughly 16% to trade above $406, while large holders bought nearly $914,000 and newly created wallets accumulated about $1.74 million, according to Nansen. A related video is available here.
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