Key Points
- SilentSwap introduced its V2 protocol on Oct. 31, 2025, providing cross-chain private swaps.
- Despite claiming OFAC and AML-compliance, SilentSwap prohibits US users and purges transaction data daily.
SilentSwap, a platform created by the pseudonymous Shibtoshi, launched its V2 protocol on October 31, 2025.
This protocol functions as a non-custodial swap service with multi-chain support.
Compliance and Restrictions
SilentSwap has stated that it offers an “OFAC and AML-compliant architecture.”
Shibtoshi has expressed that privacy issues have been a hindrance for institutional capital to transition on-chain.
SquidGrow LLC, a company registered in St. Vincent & Grenadines, runs SilentSwap.
The Terms of Service explicitly states that residents, citizens, or entities incorporated or registered in the United States are not allowed to use the service.
The platform’s FAQ reveals that it does not require any personal information and that transaction data is deleted every day.
This poses a technical difficulty for enforcing the ban on US users or screening against sanctioned wallets.
SilentSwap’s approach is different from Tornado Cash, which operated through immutable smart contracts without a company or Terms of Service.
Previous Sanctions and Legal Implications
Tornado Cash was sanctioned by the US Treasury in August 2022, but the sanctions were overturned by a federal appeals court in November 2024.
The court ruled that OFAC had no authority to sanction immutable smart contracts.
The Treasury lifted the sanctions on Tornado Cash on March 21, 2025.
Unlike Tornado Cash, SilentSwap operates as a centralized company, which makes it susceptible to sanctions as a legal entity.
Platform Features and Founder’s Background
The platform’s homepage reports $7.8 million in swapped assets across 2,623 transactions.
SilentSwap supports eight blockchain networks and allows users to send tokens to up to 16 destination wallets in a single transaction.
The service offers both “Semi-private” and “Max Privacy” modes.
Shibtoshi became famous after investing 37 ETH in Shiba Inu in August 2020, amassing 104 trillion tokens.
His position reached a peak value exceeding $5.7 billion.
He uses a pseudonym to protect his identity.
The recent Shiba Inu burn rate surge removed 4.76 million tokens in 24 hours.
Shibtoshi stated in the press release: “No CFO would wire funds if competitors could watch in real time.”
