there is no proof there was nor no proof there wasn't correct, but being a cynical person, and understanding the fact that both zooko and matthew greene wanted to put a backdoor in the encryption for law encforcement, the israeli developers, and then the whole trusted setup thing which really never went away despite what zcucks will tell you, makes me think this was an intentional inflation bug which was purposely exploited for a long time and only recently came to light. my circumstantial evidence case here would probably hold up in court
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I am aware of the post by Zooko, contemplating such a feature but the tech of Halo 2 implemented a Backward Secrecy mechanism, while it was true that under the previous trusted set up Z-cash could have been exploited this is no longer the case.
To give an equivalence, it’s like how under Monero’s current system of ring signatures a flood attack could reduce the ring set, whereas with FCMP++ this becomes drastically harder, if not impossible.
The bug if exploited would only impact the orchard pool (shielding), and not the transparent pool since Z-cash has a limitation on how many coins can enter, and leave a privacy pool (Turnstiles).
A developers national origin is redundant in most regards.
Yes, I know Israel is known for its intelligence agency, however, so is The United States, does that mean anything developed in America is “Fed’d”?