SilentSwap has recently launched its V2 protocol, which debuted on October 31, 2025. This updated version of the platform enhances its capabilities for providing cross-chain private swaps, allowing users to transact across various blockchain networks without compromising privacy.
The platform is designed as a non-custodial swap service that boasts support for multiple blockchain networks. According to SilentSwap, its architecture complies with both the Office of Foreign Assets Control (OFAC) and Anti-Money Laundering (AML) regulations. However, in a move that sets it apart from many other platforms, SilentSwap prohibits users from the United States. The Terms of Service explicitly states that individuals or entities registered in the U.S. cannot make use of its services.
Interestingly, SilentSwap operates under SquidGrow LLC, a company registered in St. Vincent and the Grenadines. The FAQ section of the platform clarifies that it does not require any personal identifying information from users and that all transaction data is purged daily. This practice raises questions about the technical implementation of enforcing a ban on U.S. users or screening against sanctioned wallets, as the daily data deletion complicates traceability.
SilentSwap’s compliance narrative contrasts with that of Tornado Cash, another privacy-focused platform that previously faced sanctions. Tornado Cash was sanctioned by the U.S. Treasury in August 2022, but a federal appeals court overturned this decision in November 2024, ruling that OFAC lacked the authority to sanction immutable smart contracts. The sanctions on Tornado Cash were lifted on March 21, 2025. Unlike Tornado Cash, which operated as a decentralized entity via immutable smart contracts without a corporate identity, SilentSwap’s centralized structure makes it more susceptible to legal scrutiny and potential sanctioning.
According to the platform’s homepage, SilentSwap has facilitated approximately $7.8 million in swapped assets across over 2,600 transactions. Users have the flexibility to send tokens to up to 16 destination wallets in a single transaction and can choose between “Semi-private” and “Max Privacy” modes to fit their privacy needs.
The founder of SilentSwap, known by the pseudonym Shibtoshi, gained public attention in August 2020 after investing 37 ETH in the Shiba Inu project, ultimately acquiring 104 trillion tokens, which valued at over $5.7 billion at its peak. Shibtoshi continues to operate under a pseudonym to maintain his confidentiality. Highlighting the importance of privacy in financial transactions, he commented in a press release, “No CFO would wire funds if competitors could watch in real time.”
In light of a recent surge in the burn rate of Shiba Inu tokens, where 4.76 million tokens were removed in just 24 hours, Shibtoshi’s focus on privacy and secure transactions becomes particularly relevant as institutional capital shows increasing hesitance to embrace on-chain solutions. The development of SilentSwap’s V2 protocol represents a significant step in addressing privacy concerns while navigating the complex landscape of regulatory compliance.
