GM. Vitalik Buterin unveiled Kohaku, a new Ethereum privacy framework using zero-knowledge tools like Railgun and Privacy Pools to bring default onchain privacy closer to reality.

Meanwhile, the White House reviews new IRS crypto oversight rules, a Cloudflare outage hit major exchanges, and Mt. Gox moved nearly $1 billion in Bitcoin.

Privacy, policy, and uptime are under the spotlight today. 👇

Vitalik Launches Kohaku Privacy Framework for Ethereum

Ethereum founder Vitalik Buterin unveiled Kohaku, a privacy-focused toolkit designed to strengthen onchain security across the Ethereum ecosystem. Introduced during Devcon, the open-source project marks a renewed effort by the Ethereum Foundation to prioritize privacy network-wide.

Buterin said Ethereum remains “behind where it could be” on privacy, calling the effort a “last-mile” challenge for developers. Kohaku’s modular framework lets wallets and dapps integrate features like Railgun and Privacy Pools, which use zero-knowledge proofs to conceal compliant transactions.

A live demo showed a wallet shielding user balances through a Railgun integration, offering default opt-in privacy for MetaMask or Rainbow users. The framework may later expand to include mixnets and zero-knowledge browsers enabling deeper anonymity at the network level.

The launch follows the Foundation’s creation of a 47-member Privacy Cluster and rebrand of its scaling team to Privacy Stewards of Ethereum. Together, they aim to deliver features such as private voting and confidential DeFi as Ethereum advances its “privacy upgrade path.”

White House Reviews IRS Crypto Surveillance Proposal

The White House began reviewing a proposed rule that would expand IRS oversight of US citizens’ offshore crypto transactions. The regulation, submitted Friday to the Office of Information and Regulatory Affairs, aims to align US tax rules with new global disclosure standards. Officials said the measure would improve transparency and prevent taxpayers from hiding assets in foreign digital exchanges.

The framework builds on the Crypto-Asset Reporting Framework recommended in July’s federal digital assets report. That plan urged the Treasury and the IRS to implement international reporting practices for improved compliance and competitive parity. The White House emphasized that the initiative targets custodial providers only, clarifying that DeFi transactions remain excluded from new requirements.

Cloudflare Outage Disrupts Major Crypto Platforms Globally

Cloudflare experienced a global network outage on Tuesday that temporarily disabled front-end access for major crypto exchanges and protocols. Coinbase, Kraken, and Etherscan were among the platforms affected, showing “500 Internal Server Error” messages across multiple regions. The company described the issue as internal service degradation and said engineers were implementing fixes to restore normal operation.

Analysts said the incident underscores the industry’s reliance on centralized infrastructure providers for critical uptime. Cloudflare previously caused widespread crypto service disruptions in 2019 and 2022 during similar outages. Executives warned that platforms lacking redundant infrastructure must strengthen contingency planning as dependency on third-party network services continues to increase worldwide.

Mt. Gox Transfers $956 Million in Bitcoin to Two Wallets

Bankrupt exchange Mt. Gox moved 10,608 Bitcoin worth approximately $956 million on late Monday across two wallet addresses. Blockchain data from Arkham Intelligence showed 10,422 BTC sent to an unmarked address and 185.5 BTC retained internally. The transfer renewed speculation that preparations may be underway for the platform’s next round of creditor repayments.

Mt. Gox has gradually distributed funds since mid-2024 after losing 850,000 BTC during its 2014 collapse. Rehabilitation trustees recently postponed repayment deadlines to October 2026, marking a third extension since the original 2023 schedule. Despite progress, the exchange still controls over 34,000 Bitcoin, leaving billions yet to be disbursed under court-supervised oversight.

Data of the day

El Salvador’s Bitcoin Office announced a $100 million acquisition of 1,090 Bitcoin on Monday evening, its largest single-day purchase. President Nayib Bukele said the addition raised national holdings to 7,474 BTC, valued around $676 million. The purchase occurred as Bitcoin fell below $90,000, continuing the government’s practice of buying during market downturns.

However, questions remain about whether the acquisition violates terms of El Salvador’s $1.4 billion IMF loan agreement. Officials previously denied recent purchases, citing consolidation of assets across government wallets rather than new market entries. Bitcoin Office director Stacy Herbert maintained that the country continues buying despite IMF restrictions, calling blockchain records public proof.

More breaking news

• Aave launched a retail savings app offering up to 9% APY, real-time yield tracking, and balance protection up to $1 million for everyday depositors.

• Cboe will launch Bitcoin and Ether continuous futures on December 15, providing perpetual-style exposure to crypto markets within a regulated and transparent US exchange.

• Fidelity, VanEck, and Canary introduced a new wave of Solana ETFs across US markets this week, reflecting growing institutional demand for staking-enabled altcoin products.

• Coinbase’s public sale of Monad tokens raised $43 million in its first 23 minutes before enthusiasm faded, contrasting sharply with last month’s oversubscribed MegaETH offering.

• Mastercard selected Polygon to power verified usernames for self-custody wallets, integrating Mercuryo’s API to link human-readable aliases securely to onchain identities.

• British hacker Joseph O’Connor must repay $5.3 million in stolen Bitcoin after admitting to hijacking high-profile accounts from Barack Obama, Jeff Bezos, and major corporations.

• Brazil is considering an IOF tax on cross-border crypto payments while aligning its rules with CARF standards to close fast-growing stablecoin tax loopholes.

• Revolut partnered with Polygon to enable global crypto remittances and stablecoin payments for over 65 million users across Europe, the UK, and supported regions.

• The SEC excluded crypto from its 2026 examination priorities, signaling a friendlier regulatory stance aligned with President Trump’s deregulatory approach to digital assets.

For the latest updates on digital asset markets, follow us on X @Datawalletcom.

Need help?

Contact our support team for any assistance you are looking for.