Ethereum creator Vitalik Buterin said, “Privacy is not a feature. Privacy is hygiene,” after hackers infiltrated several U.S. banks and stole client information.
Reports indicate that hackers targeted JPMorgan Chase, Citi, and Morgan Stanley during a cyberattack on mortgage technology firm SitusAMC. The breach highlighted the vulnerability of sensitive data in banks and the ease with which large systems can expose customer information.
Banks face risk as stolen data exposes sensitive client records
SitusAMC was the victim of a cyberattack on November 12, 2025, that exposed large amounts of sensitive corporate information, including accounting records and legal documents. In this instance, customer data may have been compromised. The company announced that although the breach has been stopped, its systems are currently operational, and it has notified federal authorities of the incident.
Notably, no encrypting malware (such as ransomware) was used, indicating that cybercriminals attempted to evade detection. Some of the banks that risk being affected are JPMorgan Chase, Citi, and Morgan Stanley, according to multiple reports. The full extent of the leaked data remains to be seen. Still, the threat that one third-party vendor’s breach might affect multiple Wall Street banking giants underscores an emerging threat to supply chains that can be exploited through cyberattacks.
Hackers infiltrated the security systems of SitusAMC and stole client information linked to major banks. They stole accounting papers, legal agreements, and other sensitive client and customer information, so officials at the company are investigating the extent of the theft and its potential use in fraudulent activities.
Experts say that storing large amounts of personal and business information in one place is very risky, as hackers can use stolen information for illegal activities that damage the reputations of both companies and their customers.
JPMorgan Chase, Citi, and Morgan Stanley were all notified that their client data may have been compromised, and the news quickly spread on social media platforms. Financial news accounts and tech commentators on X discussed the incident, raising concerns among the public about how large banks must take responsibility for their own security systems and those of their clients.
Members of the tech and crypto communities used the incident to highlight the dangers of storing sensitive data without robust security measures. Ethereum co-founder Vitalik Buterin even said privacy should be as essential as hygiene, so that banks and digital companies treat it as a routine.
Ethereum developers are making new tools to keep people’s information safe
Buterin wrote an essay in April that outlined a plan for Ethereum to enhance privacy by utilizing stealth addresses, which conceal transaction details. ETH would also display only the necessary information in specific situations, and zero-knowledge tools would enable users to interact without needing to understand complicated cryptography to protect themselves.
Shiv Shankar, CEO of Boundless, said that privacy must be a routine practice to prevent hackers and mistakes from exposing sensitive information and causing real harm to people who use the network.
The Ethereum Foundation introduced a new privacy-focused research cluster in October, hiring 47 engineers, cryptographers, coordinators, and researchers to collaborate on projects that enhance the safety and privacy of ETH for users. The team also showcased a privacy-first browser wallet and software toolkit called Kohaku, which Nicolas Consigny and Buterin created. The software helps users protect their information when using ETH applications.
Bitcoin developers are also working on Taproot upgrades and wallet-level improvements that make transactions harder to trace and more secure. At the same time, developers are building new Ethereum layer-2 solutions with privacy as a fundamental part of the system, rather than adding it later.
Companies that focus on privacy, such as Zcash, have also become increasingly popular now because they allow users to hide their transaction details. A Nasdaq-listed company purchased more ZEC, and the price increased by 469% in one month, which only proves that investors are starting to recognize the value of privacy.