SOL Strategies buys Zyga to add ZK privacy on Solana

SOL Strategies, a company listed in Toronto, completed an asset purchase from Darklake Labs on April 14, acquiring Zyga, a zero-knowledge privacy system for Solana, and hiring Darklake’s engineering team. The purchase price was $1.2 million, paid as $200,000 in cash and $1 million in SOL Strategies shares; the share consideration is subject to a four-month lockup.

Zyga is built around zero-knowledge proofs, a cryptographic method that allows one party to prove a statement is true without revealing the underlying data. On public blockchains such as Solana, pending and settled transactions are visible on-chain. That visibility allows automated actors to detect and act on pending trades, including front-running and sandwich attacks. Zyga is designed to enable transactions whose details remain private while still being verifiable and compatible with protocol requirements.

Darklake’s team tested Zyga in competitive settings. The project placed second in the DeFi track at the Solana Radar Global Hackathon and participated in the Colosseum Accelerator for Solana startups. The acquisition transfers the code and the personnel who built Zyga into SOL Strategies.

Under the agreement, Darklake’s founders and engineers will join SOL Strategies and continue development of Zyga within the public company’s operations and budget. The company described the transaction as an asset acquisition rather than a stock purchase.

Financially, SOL Strategies paid $200,000 in cash and issued $1 million in shares as consideration. The four-month lockup on the share portion restricts transfers or sales of those shares during the period. The deal closed on April 14.

The company said the acquisition expands its activities from an investment vehicle to include direct development of blockchain infrastructure alongside its existing investments. SOL Strategies has not provided a timeline for wider deployment or integration of Zyga. The acquired technology includes a compliance component intended to allow auditing or verification when required.