ZEC Drops 13% After ECC Leadership Split Triggers Governance Fears

The entire Electric Coin Company team behind privacy-focused cryptocurrency Zcash has departed from Bootstrap, the nonprofit organization created to support the token. CEO Josh Swihart announced the split and confirmed plans to establish a new company.

Swihart stated the team was “constructively discharged” by four Bootstrap board members. He identified Zaki Manian, Christina Garman, Alan Fairless, and Michelle Lai as having “moved into clear misalignment with the mission of Zcash.”

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…

— Josh Swihart 🛡 (@jswihart) January 7, 2026

The departing team plans to continue building privacy-focused cryptocurrency infrastructure. Swihart emphasized that the Zcash protocol itself remains unaffected by the organizational changes.

The terms of our employment were changed in ways that made it impossible for us to perform our duties effectively and with integrity

Swihart wrote.

He added the decision protects the team’s work from what he called “malicious governance actions.”

Zcash Leadership Transition Preceded the Split

Zooko Wilcox, the former CEO of the Electric Coin Company who stepped aside in 2023 and passed leadership to Josh Swihart, publicly backed the Bootstrap board on Wednesday.

In a post on X, Wilcox said he has worked closely with board members Alan Fairless, Zaki Manian, and Christina Garman for over a decade, and with Michelle Lai for roughly five years, describing them as individuals he considers having “exceptionally high integrity” based on long-standing professional experience.

Big drama in one (or two now?) of the many Zcash support orgs. None of it involves me or Shielded Labs, and it's not my place to opine on it, except I want you to tell you two things: ⤵️ https://t.co/QJmH9vhbBS

— zooko🛡🦓🦓🦓 ⓩ (@zooko) January 7, 2026

Wilcox also sought to reassure users that the dispute would not affect the network itself, emphasizing that Zcash remains open source, permissionless, secure, and private.

The departure follows a significant leadership change at ECC in December 2023. Zcash founder Zooko Wilcox stepped down on Dec. 18, 2023 with Swihart promoted to replace him as CEO.

I cannot begin anywhere else but to give my thanks and respect to @zooko. He breathed life into Zcash and has been its flag bearer – not just for the project but for human freedom. He is a hero.

— Josh Swihart 🛡 (@jswihart) December 18, 2023

ECC expressed confidence in the transition at the time. “We feel confident in Josh’s leadership — in finding product-market fit, unlocking new partnerships and collaboration, improving Zcash usability and increasing adoption,” the company stated.

Wilcox acknowledged strategic disagreements with Swihart regarding Zcash’s direction. However, he maintained the two never clashed on the fundamental purpose of the project.

“I don’t think this conflation of Zcash with me personally is healthy for me, and I don’t think it’s healthy for Zcash,” Wilcox said. He added that “Zcash’s role in human history is, and will be, much bigger than any individual.”

Bootstrap operates as a 501(c)(3) nonprofit established specifically to support Zcash development. The organization governed ECC until the recent governance dispute emerged.

Market Reacts to Organizational Turmoil

The market response to the governance crisis proved swift and negative. ZEC prices declined sharply, with reports noting drops between 7% and 13% within 24 hours of the announcement.

Trading volumes surged as market participants responded to uncertainty surrounding future development. The volatility spike triggered stop-loss cascades across exchanges.

Fear among holders and traders intensified as ZEC fell through short-term technical support levels. Sentiment shifted decidedly bearish amid questions about governance stability.

The privacy-focused cryptocurrency experienced significant intraday swings following the news. Prices reached highs near $490 before dipping below $380 during peak volatility periods.

Meanwhile, the founding team remains committed to their original mission. “We’re founding a new company, but we’re still the same team with the same mission: building unstoppable private money,” Swihart stated.

Zcash currently trades around $390 to $410 according to latest exchange data. The price reflects significant downside pressure following the organizational announcements.

Recent trading sessions recorded highs approaching $490 and lows dipping below $380. This $110 range underscores elevated volatility tied to governance uncertainty.

Short-term technical support levels have been breached during the selloff. The breakdown triggered automated selling as stop-loss orders executed across trading platforms.

Trading volume remains elevated compared to pre-announcement levels. Increased activity suggests market participants continue repositioning amid unclear organizational outlook.

The near-term price trajectory remains bearish until governance concerns find resolution. Traders should expect continued volatility as the market digests organizational developments.