Zcash: Arkham Tracks $420 Billion in ZEC Activity Despite Privacy Features
Zcash (ZEC) offers users a level of financial privacy that Bitcoin does not provide by default, but its blockchain activity is not entirely invisible. In a September 24, 2026, research report, Arkham Intelligence said it had labeled more than half of Zcash activity, attributing approximately $420 billion in transaction volume to known individuals and institutions. The findings highlight the difference between Zcash’s optional privacy features and the public transaction data that remains available for blockchain analysis.
Zcash Privacy Depends on How Transactions Are Conducted
Launched in October 2016, Zcash was developed using Bitcoin’s codebase and introduced cryptographic technology designed to conceal transaction details. Like Bitcoin, the network has a maximum supply of 21 million coins, uses proof-of-work consensus and follows a transaction model based on unspent transaction outputs. Its defining feature is the ability to shield transaction information using zero-knowledge proofs, specifically zk-SNARKs.
Zcash supports transparent addresses, known as t-addresses, and shielded addresses, known as z-addresses. Transparent transactions publicly expose the sender, recipient and transferred amount, making them accessible to blockchain explorers and intelligence platforms. Shielded transactions can conceal these details, allowing the network to verify that transfers are valid without publicly revealing the underlying financial information.
The network supports four main transaction types, each offering a different level of privacy. Transfers between two transparent addresses are publicly visible, while transactions moving funds into or out of the shielded pool can expose some information about the transfer. Fully shielded transactions, involving transfers between shielded addresses, conceal the sender, recipient and amount from ordinary public observers, although transaction fees and certain network-level details may remain visible.
According to Arkham, transparent transactions have historically represented a significant portion of Zcash activity. Exchanges and other financial service providers may use transparent addresses to support monitoring, accounting and compliance requirements. This creates opportunities for blockchain investigators to follow funds through publicly visible transactions and connect addresses to known entities when reliable attribution data is available.
Arkham Identifies Major ZEC Holdings and a Potential $6.6 Million Profit
Arkham’s report illustrates how transparent transaction records can reveal activity involving government-held cryptocurrency and individual traders. One example involves a wallet attributed to the US government containing ZEC seized from Alexandre Cazes, the founder of the darknet marketplace AlphaBay, who was arrested in 2017. Arkham stated that the holdings were worth approximately $737,000 when seized and had doubled in value after remaining untouched for eight years.
Another example concerns a trader who reportedly acquired $4.49 million worth of ZEC during the October 10 market crash before holding the position for approximately five and a half weeks. The wallet subsequently transferred the coins to the Gemini exchange. Arkham estimated that the trader could have generated a $6.6 million profit if the position was liquidated at the time of the deposit. However, an exchange deposit alone does not establish that a sale occurred or confirm the trader’s realized profit.
These examples demonstrate how publicly visible transactions can provide insight into the movement of cryptocurrency, but they also underline the limitations of blockchain intelligence. Analysts can trace transparent transfers and identify addresses associated with known entities, yet they cannot automatically determine the identity of every wallet owner or reconstruct the details of a fully shielded transaction.
For ZEC holders, the distinction is important. Using Zcash does not automatically make every transaction private, and moving funds through transparent addresses can leave a publicly accessible trail. At the same time, the existence of extensive blockchain surveillance does not eliminate the cryptographic protections provided by properly conducted shielded transactions.
Arkham’s findings put Zcash’s privacy model into perspective as demand for financial confidentiality attracts greater attention across the cryptocurrency market. The reported $420 billion in attributed volume shows how much activity can be analyzed when transactions remain visible or can be linked to identifiable entities. For investors and users, understanding the difference between transparent and shielded transfers is essential to evaluating what Zcash can protect and what blockchain investigators may still uncover.
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