Privacy Pools operates by leveraging zero-knowledge proofs and Association Set Providers (ASPs), enabling clean fund filtering and deposit verification without revealing user identities.

Quotes that support claims

Privacy Pools are a type of mixnet system that uses zero-knowledge proofs and an 'Association Set Provider' to ensure that only 'clean' funds enter the pool.

The Association Sets are 'dynamic' — meaning that if a transaction is admitted but later found to be illicit, it can be removed from the set without disrupting any other deposits.