Buterin Unveils Privacy Tool for Ethereum

The programmer also criticized the bankrupt FTX.

Ethereum co-founder Vitalik Buterin has introduced Kohaku, a toolkit aimed at enhancing privacy and security within the ecosystem. This was reported by The Block, citing the programmer’s presentation at the Devcon conference. 

“We are in the final stage, but Ethereum still falls short of its potential in user privacy. It is at this final stage that we need to focus our efforts on improvements. The same applies to security,” he said. 

Kohaku is an open-source project that creates a modular stack for developing secure wallets with enhanced privacy. 

In the future, the ecosystem may include tools like mixed networks for ensuring anonymity at the network level and browsers using ZK-technologies.

According to GitHub, Kohaku is in active development. At the time of writing, the repository includes packages for Railgun and Privacy Pools, which allow for hiding funds while complying with regulatory requirements and providing “proof of innocence.”

During a demonstration of Kohaku, a user was able to hide publicly visible funds through Railgun integration. The idea is to provide default privacy for any wallet connected to Ethereum.

THE WORD IS OUT!

huge congrats to @ethereumfndn, @VitalikButerin, @kassandraETH for demoing the Kohaku wallet.

onchain privacy is entering a new stage, and we’re honoured to be a part of it.

privacy, by default, right in the comfort of your wallet.

Ethereum is for privacy. pic.twitter.com/DisRovcNBu

— privacypools (@0xprivacypools) November 16, 2025

“Privacy is freedom. It gives us the space to live without constant concern about how our actions will be perceived by various centralized and decentralized structures,” Buterin noted.

In early October, the Ethereum Foundation formed a team of 47 specialists to enhance the privacy of the network’s base layer. 

Buterin on FTX

During the conference, the Ethereum co-founder also criticized the bankrupt crypto exchange FTX, calling it the complete opposite of his blockchain platform, reports Decrypt. 

In his speech, Buterin quoted the platform’s founder, Sam Bankman-Fried, who once said he was involved in cryptocurrency-related activities to “make the maximum global impact for good.” 

“FTX… is the perfect example of what happens if you take Ethereum’s principles and turn them 180 degrees. Ethereum in one sentence: it’s not something like that,” Buterin explained, pointing to the screen. 

According to him, the most obvious difference is in ideology: FTX was a centralized exchange, while Ethereum is built on the principle of decentralization. Buterin believes this was the main reason for the platform’s collapse—it required users to blindly trust without the ability to look into internal processes.

The programmer also pointed out a clear boundary between the two models:

• FTX as a classic company with a vertical management structure;
• Ethereum as a horizontal community of developers and users. 

“The difference between a company and a community is that a company has a ‘hub and spoke’ structure: there is a central element that acts and collects money. A community is a huge number of people doing something for each other,” he explained. 

The most notable aspect of Buterin’s appearance at Devcon was his outfit—a vintage shirt featuring Moo Deng and Willy Wonka-style sunglasses. 

Each cycle we unlock a new Vitalik

& we love them all pic.twitter.com/gjIl1c06Kd

— Uttam 🇦🇷 (@uttam_singhk) November 16, 2025

Earlier, the Ethereum co-founder described the DeFi sector as “mature and secure,” as well as ready for use “as a primary bank account.”