TLDR
- Hackers infiltrated SitusAMC, exposing sensitive data tied to major banks.
- Vitalik Buterin emphasized that privacy should be treated as a routine necessity.
- JPMorgan Chase, Citi, and Morgan Stanley were alerted about compromised client data.
- The breach involved the theft of legal agreements, accounting records, and customer information.
- Ethereum’s privacy-focused efforts aim to address growing security concerns in the industry.
On November 12, 2025, hackers infiltrated the systems of mortgage technology firm SitusAMC, exposing sensitive data tied to several U.S. banks. The breach affected high-profile institutions, including JPMorgan Chase, Citi, and Morgan Stanley. The incident highlighted vulnerabilities within third-party vendor relationships and raised concerns about data protection in financial services.
Privacy as a Fundamental Requirement in Tech
Ethereum co-founder Vitalik Buterin commented on the breach, emphasizing that privacy should be viewed as a routine, not a luxury. “Privacy is not a feature. Privacy is hygiene,” Buterin said. He argued that businesses must integrate privacy measures to protect their data from similar attacks.
Buterin’s remarks reflect his ongoing efforts to promote privacy as a core principle in digital technology. Earlier this year, he proposed enhancements to Ethereum’s privacy features, including stealth addresses and zero-knowledge proofs. These features are designed to conceal transaction details and allow users to interact with Ethereum applications without exposing sensitive information.
The Ethereum Foundation recently launched a privacy-focused research cluster to address similar concerns. In October 2025, the team hired 47 experts to improve privacy solutions for Ethereum. This includes developing new tools, such as the Kohaku wallet, which helps users safeguard their information during transactions.
The Impact on Banks and Financial Systems
SitusAMC’s breach resulted in the theft of sensitive client data, including legal agreements and accounting records. The company has confirmed that no ransomware or encrypting malware was involved, suggesting an effort to avoid detection. The breach’s full extent remains unclear, but the stolen data could be used for fraudulent activities, experts warn.
JPMorgan Chase, Citi, and Morgan Stanley were notified that their client data might have been compromised. As a result, concerns are growing within the financial sector about the risks posed by third-party vendors. Many experts believe that large banks must improve their security practices to prevent similar attacks in the future.
The breach has also raised public awareness about the need for better security in digital finance. Social media discussions about the attack have been intense, with many tech commentators highlighting the vulnerabilities that exposed the banks’ information. This has prompted calls for stronger security measures and better data protection practices across the industry.
Vitalik Buterin Pushes Privacy as Essential Tech
The breach at SitusAMC comes amid growing market traction for privacy-focused cryptocurrencies. Zcash, a privacy-focused cryptocurrency, saw a surge in popularity after a Nasdaq-listed company purchased a large amount of ZEC tokens. The price of Zcash increased by 469% within a month, signaling growing investor interest in privacy features.
Bitcoin developers are also working on upgrades to improve transaction privacy. The Taproot upgrade and wallet-level improvements aim to make transactions harder to trace, enhancing security. Similarly, Ethereum is focusing on layer-2 solutions with privacy built into the system from the outset, rather than adding it as an afterthought.
Vitalik Buterin’s advocacy for privacy as a routine in tech has influenced many in the crypto community. Ethereum’s efforts to improve privacy and security through its research cluster are central to this movement. As hackers increasingly target financial institutions and their third-party vendors, privacy remains a critical issue for both banks and blockchain networks.
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