Ethereum users get another way to pay privately as zk.money returns after three years
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Summary
Aztec Labs is relaunching zk.money, a self-custodial Ethereum wallet that uses the Aztec Network to conceal payment amounts, balances, and recipients while enabling transfers through readable names or payment links. Users can deposit stablecoins DAI, USDC, and USDT, with the latter two converted to DAI inside zk.money. The early Alpha version imposes deposit, payment, and withdrawal limits under $2,500, screens addresses against sanctions, and carries security risks due to incomplete audits.
Why it matters
The relaunch offers Ethereum users a new privacy tool to hide sensitive financial details typically visible on the public blockchain, such as payment amounts and counterparties. However, deposits on the Ethereum chain remain traceable, so privacy begins only after funds enter the Aztec Network. The source notes this development adds to options in the ecosystem while Ethereum’s planned 2027 upgrades may further enhance privacy features.
Key context
Ethereum's transparent ledgers make transactions publicly traceable, exposing user balances and transfer history. zk.money initially launched in 2021 and served over 75,000 wallets before closing in 2024. The relaunch comes in an Alpha state with capped transaction amounts and daily limits as safeguards. A critical cryptographic flaw was found recently and will be fixed in a future network version called V6, with zk.money launching before that fix.
Key numbers and entities
Aztec Labs, zk.money wallet, Aztec Network, and stablecoins DAI, USDC, USDT are mentioned. Limits include transactions capped below $2,500 and a shared daily deposit allowance of $50,000. The original zk.money served 75,000 wallets and processed more than $100 million prior to 2024 shutdown. Deposit and withdrawal fees are $0.35 and $0.20 plus Ethereum network costs.
What remains unclear
The source does not specify the exact security or privacy guarantees post-relaunch beyond the stated limits and network design. Details about protections against the disclosed V5 cryptographic flaw after the fix, timeline for supporting assets beyond DAI, and the long-term plan for raising transaction caps remain unspecified. Also unaddressed is the extent to which sanctions screening affects user experience or privacy.