Catenaa, Tuesday, May 20, 2025-Privacy Pools, an Ethereum-based privacy protocol, has temporarily suspended new deposits after identifying a bug that disrupted user transactions, the platform confirmed Monday.
The technical issue, which surfaced late Sunday, led the team behind Privacy Pools to halt deposit functionality as a precautionary measure.
Developers are currently investigating the bug, which appears to have impacted how user transactions are processed within the protocol. No timeline for a full resolution has been provided.
Privacy Pools allows users to obscure the origin of their crypto assets through cryptographic mechanisms similar to zero-knowledge proofs.
It was introduced as a successor to Tornado Cash, which faced sanctions in the US for alleged facilitation of money laundering. Privacy Pools had positioned itself as a more compliant alternative, aiming to offer privacy without violating regulatory standards.
The bug’s discovery comes at a time when privacy protocols are under growing scrutiny from regulators worldwide.
Though no user funds have been reported lost or compromised, the platform’s developers emphasized that halting deposits was a necessary move to protect users and preserve transactional integrity.
The incident marks a significant moment for Privacy Pools, which had been gaining traction in privacy-focused crypto communities. Observers say the outcome of the bug fix could influence user trust and broader adoption.
The team has not disclosed whether the vulnerability stemmed from a smart contract flaw or an implementation error. Further updates are expected in the coming days as engineers work to patch the issue and restore full functionality.
