From Cointelegraph

March 31, 2025 9:11 pm:

A new privacy tool, Privacy Pools, launches on Ethereum, allowing users to transact privately and prove funds aren’t linked to illicit activities. Supported by Ethereum co-founder Vitalik Buterin, the tool utilizes “Association Sets” to batch transactions into anonymous pools, ensuring compliance and privacy. Initial deposits are limited to 1 ETH.

Association Sets are dynamic, allowing removal of illicit transactions without disrupting others. Users can “ragequit” disqualified deposits to return funds. Privacy Pools aims to “Make Privacy Normal Again” while achieving regulatory compliance, following backlash from regulators due to illicit use. Tornado Cash was sanctioned but later removed from OFAC’s blacklist.

Over 21 ETH transferred into Privacy Pools from 69 deposits, including one from Buterin. Investment support received from Number Group, BanklessVC, Public Works, and angel investors. Buterin, Chainalysis Chief Scientist, and academics crafted a white paper supporting Privacy Pools. Code passed a successful audit by Audit Wizard.

$41 billion worth of illicit transfers made in 2024, accounting for 0.14% of total on-chain volume. Chainalysis predicts this figure could rise to $51 billion as more criminal-tied addresses are discovered. Chainalysis report published on Jan. 15. Privacy Pools aims to combat illicit activity in the crypto space.

Read more at Cointelegraph: Privacy Pools launch on Ethereum, with Vitalik demoing the feature