Buterin Warns AI Threatens Privacy Amid ETH Turmoil

Key Takeaways
Vitalik Buterin, co-founder of Ethereum, warns of increasing data centralization driven by artificial intelligence (AI). He calls for stronger privacy measures to protect individual autonomy. At the same time, market movements and regulatory delays surrounding Ethereum ETFs are unsettling investors. While large investors (so-called “whales”) are selling ETH, a single investor has made a multi-million dollar purchase. Meanwhile, the U.S. Securities and Exchange Commission (SEC) has postponed its decision on an Ethereum staking ETF from Grayscale.
Buterin’s Warning: AI Threatens Privacy and Freedom
Vitalik Buterin has expressed concern about AI’s impact on privacy. In a recent blog post, he emphasized that privacy is a fundamental human right. Without it, society risks becoming one where self-censorship is the norm and surveillance is widespread.
He urges developers to make greater use of technologies such as ZK-SNARKs (Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge), FHE (Fully Homomorphic Encryption), and code obfuscation. These tools enable secure data processing without revealing the underlying information. For Buterin, this isn’t just about blockchain — it’s about protecting individual thought in an increasingly interconnected world.
Market Reacts Nervously: ETH Sales and a Surprising Buy
Just before Buterin’s post was published, the market saw notable activity. Two large wallets sold a combined total of 16,923 ETH worth approximately USD 28 million. The transactions were made via Kraken and caused the price to dip below USD 1,640.
At the same time, an unusual purchase occurred: an anonymous investor acquired 4,208 ETH worth USD 6.87 million. The timing — immediately following the large sales — raises questions. Is this a strategic move in anticipation of future developments?
SEC Postpones Decision on Ethereum Staking ETF
The U.S. Securities and Exchange Commission has delayed its decision on Grayscale’s application to include Ethereum staking in exchange-traded funds (ETFs). A ruling was originally expected by April 17. The deadline has now been extended to July.
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Grayscale aims to offer staking rewards for its Ethereum Trusts via NYSE Arca — without mixing customer funds. The delay indicates that U.S. regulators remain hesitant to approve new crypto products involving staking. For investors, this means more waiting.
Our Assessment
Vitalik Buterin brings attention to a critical issue: privacy as the foundation of digital freedom. His warning is not new, but the rapid advancement of AI adds new urgency. For you as a cryptocurrency user, this is highly relevant — privacy affects not just transactions, but your digital identity as a whole.
At the same time, the market shows how much regulatory uncertainty and large investors can influence confidence. While some are exiting, others clearly see opportunity. The SEC’s postponed decision extends the uncertainty, but it is not a final rejection of Ethereum staking ETFs.
Keep a close eye on developments — both technological and regulatory. Ethereum is at a turning point, and privacy could play a key role in its future.