- Ethereum founder Vitalik Buterin invested in crypto startup Nocturne Labs, which raised $6 million to enable private accounts on Ethereum using zero-knowledge proofs.
- Nocturne Labs, founded in 2021, is building a protocol to allow anonymous transactions on Ethereum and Layer 2 networks through privacy technologies like mixers.
- Nocturne aims to balance privacy with regulatory compliance by taking a “measured approach”, including permissioned deposits initially to avoid illicit usage.
About Nocturne Labs
Founded in 2021, Nocturne Labs is building a protocol to allow anonymous transactions within the Ethereum ecosystem. The startup’s technology will allow users to have internal accounts where they can receive, spend, and transfer funds privately using zero-knowledge proofs.
Nocturne aims to bring the privacy benefits of mixers and other privacy-focused networks to Ethereum in a seamless way. The protocol will support Ethereum and Ethereum Layer 2 networks. Nocturne is expected to launch on the Ethereum mainnet next month.
Regulatory Concerns
Privacy technologies like mixers have faced regulatory crackdowns for enabling illicit activities. Nocturne says they are taking a “measured approach” to stay compliant. The protocol will have permissioned deposits initially to filter out illicit funds.
Nocturne aims to strike a balance between privacy and permissionless usage in the future. The startup was co-founded by Luke Tchang, who serves as CEO. After launching on Mainnet, Nocturne plans to expand hiring in engineering, growth, and legal/compliance roles.
