Independence

[aaal]

Some fun historical facts:

Crypto firms have supplied over $190 Million (more than one third of all corporate money) so far in the United States of America’s 2026 ‘midterm’ elections.

Leading in funding is Fairshake, a super PAC which alone has over $80 Million.* Donors include Coinbase, Andreesson and Horowitz, and the Winklevoss twins.

Fairshake seeks to institutionalize the crypto industry as a permanent political force in the United States federal government, overtly using political spending to get their way in Congress.

POTUS (President of the United States) Trump themselves made about $1.4 Billion in 2025 from his crypto businesses, including meme coins and World Liberty Financial products such as ‘governance tokens.’**

The White House says all actions being taken are in the interest of the American people.

The billionaire Winklevoss† megadonors founded and gave $21 Million as individuals, being by far the primary funders, to the Digital Freedom Fund PAC, which only supports MAGA (Make America Great Again - aka Trump platform) republicans, writing:

The mission of the @FreedomFundPAC is to help realize President Trump’s vision of making America the crypto capital of the world. Since inauguration, @POTUS and his Administration have been delivering on the promises they made on the campaign trail and then some. We want this unprecedented progress and momentum to continue. Our goal is to support President Trump and his Administration’s efforts to continue to usher in America’s Golden Age.

The ‘family office’ of Winklevoss Capital Management funds 99% republican causes by dollar value.

Each twin individually donated $1 million in bitcoin in 2024 to Trump’s presidential campaign. Because the donations exceeded the federal limit, the excess amount (about $155k each) was refunded. They also donated more than $5 million in total to the Republican National Committee, National Republican Senatorial Committee, Senate Leadership Fund, Congressional Leadership Fund and National Republican Congressional Committee.

In November 2025, the twins retooled their biotechnology firm into Cypherpunk Technologies, a digital asset treasury company dedicated to accumulating ZEC, where former ECC (Electric Coin Company) CEO and founder @zooko and ZODL (Zcash Open Development Lab) CEO @joshs now both serve as a strategic advisors. Though the Winklevoss twins are reported to have invested in the ECC in 2018 (listed in public portfolio in 2019), the new Cypherpunk company aims to acquire at least 5% of the total circulating supply of Zcash. Six months ago it held 1.76%.

Crucially, the twins are also funding some of the keystone Zcash development organizations: ZODL and Shielded Labs (SL).

ZODL emerged from ECC. In 2020, the ECC ‘donated itself’ to being a wholly-owned subsidiary of the non-profit Bootstrap Project, enjoying tax benefits, and maintaining mining rewards - now directed to the new org.

SL, a Swiss-based non-profit organization, was publicly announced in early 2023, during concerns that work on Zcash might be impeded and that reliance on the US regulatory environment was risky.†† At that time, founder @aquietinvestor also said:

Shielded Labs will partner with human rights and civil liberties organizations to get Zcash into the hands of those who need it the most.

After leaving ECC in late 2023, @zooko joined SL as ‘Head of Product’ in 2024, and the first incoming donation from the twins to was publicly announced supporting the team creating the hybrid proof-of-stake Crosslink project. A second donation of $1.2 million was announced in 2026.

@joshs took the helm of ECC as CEO in December 2023. At some point in the next two years, an opportunity to use the Zashi wallet app as a for-profit vehicle was identified. However, this plan was blocked by Bootstrap’s board, and the entire ECC development team resigned on January 7, 2026, forming ZODL shortly thereafter. Josh is quoted, saying:

Basically, there’s no benefit in keeping a fast-growing technology company under a nonprofit when the substance of the organization is a for-profit…

and that the Bootstrap board was in:

clear misalignment with the mission of Zcash.

Now taken offline, the Bootstrap board issued a statement archived here, saying:

Over recent weeks, the board engaged in discussions regarding 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… Zcash’s power lies in its integrity - as technology and as a movement. A restructuring done in a way that invites scrutiny, even if well-intentioned, would damage that credibility and set back the cause of privacy and financial freedom.

While ZEC itself rapidly shed a significant percentage of its exchange rate, ZODL quickly received Winklevoss Capital led seed fundraising of over $25 million, also joined by Cypherpunk, @balajis, and other Fairshake-adjacent organizations: Coinbase Ventures, and a16z (Andreesson and Horowitz’s venture capital firm). Zashi became Zodl, now free from the constraints of being developed under a non-profit.

@paulbrigner, already Chief Policy & Regulatory Officer at ZODL, was elected to the Zcash Community Grants board, which reviews applications for independent development for the public good of the Zcash ecosystem, allocating from the development fund.

Paul is also organizing a ‘cypherpunk’ policy dinner event in Washington DC for “VIPs, policymakers, policy influencers.” This is being funded by the current sitting ZCG by a 3/5 vote. When questioned about the title of the event Paul said it was “intentionally ironic”.

Cryptocurrencies have never previously been so aligned with the currents of political power, particularly US power. The sector’s scope and intensity of efforts demonstrate a will to establish a strong influence, and at least some willingness to propel such power.

Zcash is now reasonably said to be the globally leading privacy coin. It has the highest exchange rate per coin, the biggest market cap, and dwarfs most other direct competitors in development efforts.

ECC and now ZODL have allocated significant efforts to interface with and influence authorities such as exchanges, regulators‡, and governments. SL is developing a way staking held ZEC will generate a yield in perpetuity.

Both Shielded Labs and ZODL, arguably the primary architects of Zcash’s future, are fueled by capital from billionaire venture capitalists who back an authoritarian regime, and hold massive direct stakes in ZEC.

This isn’t a hypothetical future.

This is history. This is now.

Happy Independence Day!

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*In an example of how receptive USG is to this type of influence, this year a major cryptocurrency bill that was headed for a committee vote in the Senate was scrapped a few hours after Coinbase CEO Brian Anderson tweeted about it.

**This accounts for about 64% of their personal income ($2.2 billion), which has quadrupled since taking office in 2024. This sets the record (by about 100x) for the highest annual income ever reported by a sitting US president. Though some difficulties exist in finding the full truth due to shifting disclosure laws and incomplete records, 2nd place for income as sitting POTUS is probably Lyndon B. Johnson, estimated at about 1% of Trump’s current status as the only billionaire POTUS, adjusting for inflation.

†The Winklevoss twins are estimated to be jointly worth $4.6 Billion. Besides what is listed in the main body of this post, they also donated to MAGA Inc. (pro-Trump super PAC) and some individual republican campaigns including RFK Jr. Additionally, they have invested in American Bitcoin, a crypto-mining venture backed by Eric Trump and Donald Trump Jr.

††SL operates only on donations, and has attracted some very wealthy patrons, including Ethereum founder and privacy supporter Vitalik Buterin, who incidentally also recently weighed in against coinholder voting.

‡(also see this and this under “Advanced engagement”)

[dismad]

Is your intent to question whether some of Zcash’s key development organizations (ZODL and Shielded Labs) are genuinely independent? Trying to better understand you perspective, as it seems the tone is critical and sarcastic.

[aquietinvestor]

The Winklevoss brothers are among the Zcash holders and supporters who have donated to Shielded Labs, and we greatly appreciate their support. That said, they do not determine our roadmap or priorities, nor have they ever directed our work or told us what to build. We independently decide what to work on based on what we believe is best for Zcash.

[Shawn]

TL:DR

Trump bad and Winklevoss bad for supporting Trump.

Winklevoss support Zcash dev teams so that’s bad.

Zcash entities engage policy makers in DC, also bad.

[zancas]

No time for detailed response now.

I appreciate the commitment to open-information.

More l8r.

[Lowo88]

When I noticed the twins supporting Zcash, I knew this blockchain was going places.

[aaal]

@dismad

Is your intent to question whether some of Zcash’s key development organizations (ZODL and Shielded Labs) are genuinely independent? Trying to better understand you perspective, as it seems the tone is critical and sarcastic.

Critical, yes. Sarcastic, no … besides the lone ‘intentionally ironic’ “Happy Independence Day!” which was meant to be provocative.

Yes, I am concerned about genuine independence, pretty well summed here I think:

@aaal

Both Shielded Labs and ZODL, arguably the primary architects of Zcash’s future, are fueled by capital from billionaire venture capitalists who back an authoritarian regime, and hold massive direct stakes in ZEC.

There are a number of hazards, but that’s what I was underlining. I’ll have a follow up on that soon.

No one else seems to be (much and/or publicly) concerned about this. This itself is notable, to me.

Most of the post consisted of cited fact. I haven’t had one person dispute a single fact in the post.

Some more questions that came up led me to investigate and write more.

I appreciate @aquietinvestor replying. They are presently the only representative of Shielded Labs or ZODL to respond to this post.

I do think it’s an important issue to address for the overall Zcash ecosystem. In the last few years the landscape of funding (and thus, in my view, incentives) has shifted notably. This effects everyone. Soon, I’ll publicly invite more people, and the people I already tagged, to comment about this new direction.

---

@Shawn

TL:DR

Trump bad and Winklevoss bad for supporting Trump.

Winklevoss support Zcash dev teams so that’s bad.

Zcash entities engage policy makers in DC, also bad.

Lossy compression, at best.

---

@zancas

More l8r.

How soon is now?

[aaal]

Because the following facts fall into the pattern documented here, I’ll add to this thread rather than start a new one like Threads - Part I, which outlined other potential alignments of influence, and an open path for possible capture of the Zcash blockchain.

Again, nothing in any of my posts has been contradicted or questioned on the basis of the facts involved.

To Reinforce the thesis…

@aaal

Both Shielded Labs and ZODL, arguably the primary architects of Zcash’s future, are fueled by capital from billionaire venture capitalists who back an authoritarian regime, and hold massive direct stakes in ZEC.

Specifically, backing an authoritarian regime in a clear exchange of favors, aka, a quid pro quo:

A US FEC (Federal Election Commission) filing from July 20th 2026 shows Gemini Trust Company, (operating subsidary of the holding company with controlling equity in the Winklevoss cryptocurrency exchange Gemini), greatly expanded the twins’ donations to the authoritarian USA election fund MAGA Inc. PAC (political action committee), with $10 Million in bitcoin. This came less than two months after the CFTC (Commodity Futures Trading Commission) filed papers jointly with the exchange to reverse the enforcement action outlined in a settlement, including a fine of $5 million against Gemini.

The CFTC regulates US derivatives markets, and greatly reduced regulatory enforcement against cryptocurrency companies (and prediction markets) during the second Trump term. Generally, it is led by four commissioners and one chairman, appointed by the US President and confirmed by the US Senate. Now, however, there is a deviation from its statutory five-member structure: there is only one member, Chairman Michael Selig, confirmed on in December 2025.*

As sole commissioner and Chairman, Selig has a powerful role in an agency now charged with all derivatives, crypto, and the exploding prediction markets. He also has a professional background working for clients in the same sector (besides The Blockchain Association, there was Proof of Stake Alliance, Coinlist, Alluvial Finance, Berachain, Deribit, Architect Financial Technologies, and more), many of which fall into the regulatory domain of the CFTC.

To underline the context in which the recent settlement reversal and subsequent funding of MAGA Inc. was made, we could look to September 2025 when Brian Quintenz, a former a16z crypto officer, and Trump’s then-nominee for CFTC Chair leaked private messages from Tyler Winklevoss one day before Gemini’s stock IPO. Tyler’s messages were protesting the agency’s handling of the case, promoting alignment with Trump, stressing CFTC cultural reform as a top priority (making amends to Gemini was used as an example), and offering a back-channel to the president to discuss eliminating obstacles. In the messages Quintenz committed to a “fair and reasonable review” of the matter if he was confirmed as Chairman, and noted that any attempts to influence their consideration might be questionable.

When Quintenz leaked, they said that they were worried Trump might be being misled: “I believe these texts make it clear what they were after from me, and what I refused to promise. It’s my understanding that after this exchange they contacted the President and asked that my confirmation be paused for reasons other than what is reflected in these texts.”†

Trump withdrew the Quintenz nomination less than 3 weeks later, and nominated Selig.**

In an early June 2026 interview, Selig said that Gemini was politically targeted, “the Biden administration weaponized … agencies against the crypto industry,” and called for the CFTC to be non-political. Directly asked if the agency had become politicized in another way, Selig said “We’re focused on the agency of the future.”

I do not put much stock in governments or their agencies… but maybe @paulbrigner would be interested in adding this topic to the agenda at their ‘cypherpunk’ policy dinner in DC in October?

Is the future just based on bribes?

Is the Zcash project now committed to this current USA administration and its forces, as a matter of survival? What should I infer from @joshs message in the ZCG grant application thread about this policy dinner? I think this is still the closest to a comment anyone from ZODL has offered about the pattern of funding alignments in the Zcash development organizations, beyond the initial hype announcement.

What kind of forces are now at work, in or near the heart of Zcash development?

I wonder what kind of text messages some of the personalities involved in Zcash have seen.

*Among the other four vacated seats since May 2025 was Summer Mersinger, who resigned to become CEO of the Blockchain Association, a 501c6 (eg, a business league, or a chamber of commerce) registered in Washington, DC, which works to “educate policymakers about blockchain technology and its ability to pave the way for a more secure, competitive, and consumer-friendly digital marketplace.” They offer “representation before Congress and key regulators” and “lobby days” for members. The ECC (now ZODL) and very large number of other crypto companies are listed as members. Selig also counted he Blockchain Association as a client.

† Maybe… avoiding the possibility of a inverted-Gensler?

**Quintenz went on to work as senior advisor for Coalition for Prediction Markets, and sits on (prediction market project) Kalshi’s board.

[joshs]

I don’t have a lot of time to read walls of text. Happy to answer specific questions.

Our investors have been helpful in recruiting and certain tactical functions like security and networking. We are builders, and our policy advocacy is focused on the right to privacy, self-custody, and decentralized finance. It is independent from any political party.

[kworks]

Hi @aaal , thanks for your reporting. You have now entered the ice-cube. In a space which promotes permission less and trustless culture and technology the goverance requires greater analysis which at least you are attempting. I dare you to take your courage and skills to team up with an independent accounting firm and apply for a ZCG grant to do the first ever audit of the zcash development fund. The ice will grow. Thanks

[aaal]

@joshs

I don’t have a lot of time to read walls of text

Right.

Probably nothing you don’t know.

@joshs

Our investors have been helpful in recruiting and certain tactical functions like security and networking. We are builders, and our policy advocacy is focused on the right to privacy, self-custody, and decentralized finance. It is independent from any political party.

Thank you.

Now leaders from both Shielded Labs and ZODL have commented.

[aaal]

Another small footnote:

Today the CFTC declared a “market emergency,” declaring the Kalshi prediction market must be able to operate in New York, countering a state lawsuit that sought to shut down the platform as an illegal gambling operation.

As the only commissioner, CFTC Chairman Michael Selig asserts that New York has no authority to regulate these interstate financial markets.

After prior Acting Chairman Caroline Pham left to work for crypto payments firm MoonPay, Selig has proceeded with regulatory actions and advisory committee meetings while the agency has no bipartisan check on its leadership, as is required by statute.

[strahncryptography]

And is that supposed to be some sort of “gotcha”? An eighth-grade class would tell you that individuals in the United States possess the constitutional Right to Contract, under the Contracts Clause, which states, and I quote:

No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.

A “gambling” order on Kalshi is actually a derivatives contract that resolves to its face value (1 dollar). That’s why you can place an order, and profit on the order BEFORE it actually resolves by selling the contract to someone else, or countercontract in the reverse direction. It is fundamentally how the platform, or for that matter, platforms like Polymarket too, work.

The Contracts Clause explicitly prohibits a State (New York) from making a “Law impairing the Obligation of Contracts”, and since the TRO would impair the ability of a Citizen of the Union from fulfilling the obligation of a contract, the TRO is flatly unconstitutional.

Even if, say, one argues that it only applies to “Laws” (a textualist interpretation, which is frankly, so 19th century), one easily argues that via the Commerce Clause

[The Congress shall have Power] To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;

Since a contract’s counterparty can be outside the United States (“with foreign Nations”) or in another state (“among the several States”), and uses interstate wires to form the contract, the TRO would be in violation of this clause too.

To distill it in a way even you can understand:

Essentially, since New Yorkers place contracts too, say New Yorkers have placed $10,000,000 worth of contracts, against $10,000,000 worth of countercontracts from other states. By enforcing a TRO and taking away the power of the Citizen to fulfill their obligations to the contract, or enforcing a contractual clause such as dissolution or sale, the counterparties from other states can use it to their advantage and change their contracts for terms that are much more favourable for them instead.

While arguing “consumer protection”, she is leading the charge to lead New Yorkers to financial destruction, and by extension, opening the gates to massive financial harm to the United States by other state actors, leading to wealth flight. Hence, this IS an economic emergency.

[aaal]

Despite being kind of a jerk to me, you raise some fine points.

It’s not meant to be a gotcha. It’s expanding this topic I’ve been writing about. This little blurb is about this single US federal administrator ( who had come up previously reversing the enforcement action against Gemini ) quashing a state’s lawsuit unilaterally.

I’m not here to litigate. I am not fond of administrators on any level, and generally I would not say people shouldn’t be allowed to transact. I do think prediction markets raise some interesting concerns, but that’s not what I’m focused on.

[strahncryptography]

Yeah sorry about that, I’m autistic and don’t really “get” if the content I write is inflammatory or not.

About that, a single administrator could be seen as bad, ultimately it’s just the executive branch. It doesn’t matter if its 3 administrators or 10 if all are ideologically aligned to the same goal. The actual check on the power of the executive is given to the judiciary and the legislative, and you are empowered to go to the judiciary.

Any real change will be seen in courtrooms, not by yelling how corrupt the administration is, to be honest.

For that matter, do not trust the legislative either. The events of October 2025 proved that they are the same party in two different trenchcoats, and it was only reinforced by the Budd-Gillibrand Act (US-Israel FUTURES Act), which is bipartisanal.

[Zecoshi]

love the tech, hate who the backers stand with, but try to keep politics out