2025-04-01
A new privacy tool called Privacy Pools has launched on Ethereum. It helps people make private transactions while proving their money isn’t connected to illegal activity.
The platform was created by Ethereum developers at 0xbow.io and went live on March 31, 2025. One of the first people to use it was Ethereum co-founder Vitalik Buterin, who sent in 1 ETH.
How It Works?
Privacy Pools lets users move ETH
anonymously. But to use it, their wallet must pass a check to make sure the
funds aren’t linked to scams or hacks.
If approved, users can privately
withdraw their ETH. If not, they can still get their money back to their
original wallet. This makes Privacy Pools non-custodial — they don’t hold your
funds for you.
Key Features
“Association Sets” group transactions
together to keep them private.
If a transaction is later found to be
tied to crime, it can be removed without affecting others.
There’s a “ragequit” option — users can
cancel and get their money back if their deposit is rejected.
The deposit limit is 1 ETH for now, but
this will increase over time.
The idea for Privacy Pools was shaped
by a white paper co-written by Vitalik Buterin, Chainalysis scientist Jacob
Illum, and two researchers from the University of Basel. It has been downloaded
over 12,000 times.
0xbow.io also got support from BanklessVC,
Number Group, and other investors. The platform’s code was audited and approved
by Audit Wizard, a security firm started by a former Apple engineer.
So far, 69 deposits totaling over 21
ETH have been made — including one from Buterin.
Privacy tools like this have been under
pressure from regulators.
For example, Tornado Cash, another privacy
platform, was banned by the U.S. government after it was used to launder
billions by North Korean hackers. However, those sanctions were overturned in
early 2025.
0xbow.io wants to show that it’s
possible to protect privacy without helping criminals. Their goal: “Make Privacy Normal Again.”
