Railgun, a crypto privacy protocol, has vehemently denied allegations of being utilized by North Korea and other U.S.-sanctioned entities for cryptocurrency laundering activities, asserting that its zero-knowledge-based technology prevents such misuse and that the accusations lack substantiated evidence.
Despite facing scrutiny, Railgun’s total volume approaches the $1 billion milestone, buoyed by Ethereum co-founder Vitalik Buterin’s recent endorsement of the privacy protocol.
Established in January 2021, Railgun leverages zero-knowledge (ZK) cryptography to safeguard wallet balances, transaction history, and details, enabling users to interact with decentralized apps (DApps) on Ethereum or other compatible chains while preserving their privacy.
Initially identified as a “prime alternative to Tornado Cash” by blockchain security firm Elliptic, Railgun faced scrutiny following U.S. government sanctions against cryptocurrency mixers.
In response to claims made by crypto reporter Colin Wu and allegations from the FBI linking Railgun to North Korean cyber attackers laundering over $60 million worth of Ether from the 2022 Harmony Bridge heist, Railgun categorically denied any involvement.
Railgun emphasized the implementation of its “Private Proofs of Innocence” system, which prohibits access for certain groups and ensures that funds entering its smart contract are not associated with illicit transactions or actors. This system, launched in January 2023, employs cryptographic assurance to verify the legitimacy of funds and transactions.
Vitalik Buterin has defended Railgun’s privacy features, asserting that privacy is a fundamental right and highlighting the protocol’s privacy pools, which make it challenging for malicious actors to infiltrate.
Despite the controversy, Railgun’s total volume has surged to $962.8 million, with its total value locked on Ethereum surpassing $25 million. Moreover, Railgun’s native token (RAIL) experienced a significant rally following reports of Buterin’s contribution, trading at $1.18 and marking an 86.3% increase over the past week.
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