StarkWare, Sui release private transfers with audit access

StarkWare launched STRK20 on Starknet and Sui began a public beta for confidential transfers this week. Both features conceal token balances and transaction amounts while providing mechanisms for authorized disclosure for audits and legal requests.

STRK20 is a privacy framework for ERC-20 tokens on Starknet. Users can deposit tokens into a shielded pool where balances and transaction details are hidden from the public ledger. The framework applies screening when assets enter the pool and includes controls that allow disclosure under specified conditions.

Eli Ben-Sasson, co-founder and CEO of StarkWare, cautioned: “Compliance-ready does not mean STRK20 itself determines legal compliance or guarantees regulatory approval.” He described the framework as a risk-based model in which privacy is conditional and viewing-key disclosure is available under lawful request.

Sui’s confidential transfers public beta conceals transaction amounts for native Sui transfers while allowing designated parties to retrieve details for auditing or compliance. The feature uses encrypted records and cryptographic viewing keys that can be shared with auditors or authorities to reconstruct transaction details without exposing them on-chain.

Both projects rely on viewing keys and encrypted records to balance confidentiality with oversight. Developers noted the technical limits of shielded pools can complicate post-incident audits because encrypted histories require keys or proofs to reconstruct past transfers.

Recent developments have pushed privacy projects to clarify disclosure and compliance options. A court-ordered freeze affected roughly $12.5 million in USDC held in a private wrapper and prompted one project to accelerate its compliance roadmap. Separately, a vulnerability in a major privacy protocol led to an emergency network upgrade in early June; developers reported no confirmed exploitation but said it can be difficult to fully reconstruct shielded transaction history after such events.

StarkWare and Sui did not claim their releases create automatic legal compliance. Both companies framed the features as tools that can support compliance when paired with governance, key management and legal procedures. The public beta and framework release allow developers and institutions to test how conditional privacy and viewing-key disclosure integrate with existing compliance workflows.