Privacy Pools launches a new tool from Tornado Cash, allowing users to remain anonymous while avoiding associations with illegal funds.

Golden Finance reports that the encryption privacy project Privacy Pools team 0xbow has launched the “Tornado Cash Proof of Association” tool, enabling Tornado Cash users to depeg their funds from illegal activities while maintaining anonymity. The system verifies whether the withdrawal address is associated with known illegal addresses using zero-knowledge technology and records legitimate users in a public registry without exposing personal information. Currently, over 16,000 addresses related to theft, hacker, or phishing activities have been blacklisted. The team stated that this is an important step in balancing user privacy with compliance regulation and provides a practical model for future interoperability between privacy and compliance.