Ethereum Foundation backs default wallet privacy as Kohaku work advances - Crypto News

In an Oct. 26 X post, the Ethereum Foundation reaffirmed its support for default privacy in wallets, citing recent attacks and exploits that reinforced the connection between privacy and security. The Foundation highlighted Kohaku, a software development kit that integrates three privacy protocols, arguing that attackers should have less access to users' onchain histories.

Kohaku's privacy protocol integrations

Kohaku's SDK includes integrations with Railgun, Privacy Pools and Tornado Cash, as confirmed by Jordan Enev's update. The Ethereum Foundation's statement directly referenced Enev's work, which emphasized the need to make privacy a normal part of Ethereum's ecosystem.

Enev called on wallet developers to take the next step in implementing privacy features. Ambire has spent months testing Kohaku integrations, working with the Kohaku team to provide feedback, but no public launch date has been announced.

Devcon demonstration planned

The Kohaku team is preparing a demonstration at Devcon, scheduled for Nov. 3 on Lotus Stage 2. Ethereum co-founder Vitalik Buterin and Nicolas Consigny, the Foundation researcher leading Kohaku, will showcase the privacy features using Ambire Wallet.

The demonstration will include privacy protocol integrations, light clients, post-quantum accounts, and hardware wallet clear signing. The speakers will explain how light clients reduce the amount of trust a wallet places in outside infrastructure and how embedding privacy protocols allows users to access protections without understanding the underlying systems.

Privacy research and development

The Ethereum Foundation introduced Kohaku in October 2025 as part of its privacy commitment, establishing a privacy cluster of 47 researchers. The Institutional Privacy Task Force has been working to translate businesses' regulatory requirements into technical privacy specifications.

Separate research has focused on transaction fees, with proposals to let privacy pools pay network fees without a separate relayer. Account security has also been addressed through post-quantum account protection that can be added without waiting for a hard fork.

The Foundation's zkAPI project, developed with Open Anonymity Project, separates proof of payment for AI services from the funding identity while ensuring the model provider receives the user's prompt.

Tornado Cash sanctions removed

The US Treasury removed economic sanctions against Tornado Cash in March 2025 after reviewing the legal and policy issues related to applying sanctions to emerging technologies. The Treasury maintained concerns about North Korea's state-sponsored hacking and money laundering, continuing to monitor transactions that could benefit malicious actors.