Qubic Founder Eyes 51% Attack on Zcash Amid Legal Debate

• Qubic’s Sergey Ivancheglo hints at a Zcash 51% attack.
• Remarks spark legal and privacy debates in crypto circles.

On August 17, 2025, Cryptopolitan reported that Sergey Ivancheglo, founder of the AI-focused crypto protocol Qubic, publicly hinted at carrying out a 51% attack on the privacy-based blockchain Zcash. Ivancheglo described this potential attack on social media as an "economic experiment," claiming it was morally justifiable. He has also criticized Zcash’s founder, accusing them of being “pro-government” and deceptive about the network’s privacy claims.

Ivancheglo defended his remarks by invoking the U.S. constitutional right to free speech. He further asserted immunity from U.S. legal repercussions due to his residence in Belarus, a country under international sanctions. However, one X user suggested that his statements might qualify as market manipulation, considering their potential to influence the price of ZEC and impact investors negatively. These opposing perspectives underscore the regulatory challenges faced by decentralized blockchain ecosystems.

This controversy highlights broader legal ambiguities. While current laws do not explicitly outlaw 51% attacks, the coordinated effort required for such an event could potentially be prosecuted under antitrust regulations. Additionally, the international and pseudonymous nature of blockchain operations complicates enforcement, especially when individuals involved are based in jurisdictions beyond typical regulatory reach.

Previous actions by Qubic provide further context for Ivancheglo’s comments. According to Cryptopolitan, Qubic briefly gained 51% control of the Monero blockchain earlier this year. This incident caused significant disruptions, including a sharp decline in Monero’s XMR token value and Kraken suspending deposits for the cryptocurrency as a precaution. Such events underscore vulnerabilities in mid-sized proof-of-work (PoW) blockchains, which can suffer operational instability from concentrated mining activity.

Market reactions to Ivancheglo’s Zcash-related remarks have been limited. As of August 17, 2025, Zcash’s ZEC token posted a modest 3% price increase within the past 24 hours. Doubts remain about whether Qubic possesses sufficient mining power to execute such an attack. Meanwhile, Qubic’s own token has seen notable gains, suggesting divided investor sentiment regarding the two networks.

Zcash (ZEC) continues to face broader challenges in the cryptocurrency market. Over the past 30 days, its price has fallen by 16.8%, reflecting persistent difficulties for privacy-focused coins. Cryptopolitan notes that ZEC has struggled to inspire investor confidence, a vulnerability that could become more pronounced in the event of a successful attack.

As of August 17, 2025, at 17:18 UTC, Zcash (ZEC) trades at $37.73, reflecting a 2.85% increase over the past 24 hours, according to the latest market data. Its 24-hour trading volume has decreased by 1.60%, standing at $78.86 million. These figures capture the ongoing volatility surrounding ZEC amid mounting legal and technical concerns.