Railgun Defends Privacy, Denies Sanctions, Surges to $1B Transaction Mark

Amid allegations, Railgun, a prominent Bitcoin privacy protocol, vigorously refuted its use for money laundering by North Korea and US-sanctioned entities. Ethereum co-founder Vitalik Buterin's recent endorsement has bolstered Railgun's credibility, coinciding with its transaction volume nearing $1 billion.

Railgun Doubles Down on Privacy, Refutes Sanctions Allegations, and Surges to $1 Billion Transaction Volume

Amidst rising global tensions and the ongoing battle against illicit crypto usage, Railgun, a leading Bitcoin privacy protocol, has vehemently denied allegations that it has been used by North Korea and other US-sanctioned entities to launder cryptocurrency. This steadfast denial comes as the platform's transaction volume nears the $1 billion mark, buoyed by a recent endorsement from Ethereum co-founder Vitalik Buterin.

Railgun's robust privacy-enhancing technology, which utilizes zero-knowledge (ZK) cryptography, has come under scrutiny following reports that the Lazarus Group, a North Korean state-sponsored hacking organization, allegedly leveraged the protocol to launder over $60 million in stolen Ether. However, Railgun has vehemently contested these claims, asserting that its "Private Proofs of Innocence" system, implemented in January 2023, effectively prevents sanctioned actors from utilizing the platform.

"Firstly, that group is blocked from using the RAILGUN system by the ‘Private Proofs of Innocence’ system, which went live over a year ago," Railgun stated in a recent post on X. "Secondly, it was a mistaken, false allegation in the first place."

Railgun's Private Proofs of Innocence mechanism employs cryptographic verification to ensure that funds entering the protocol's smart contracts do not originate from known illicit sources or actors. This added layer of security underscores Railgun's commitment to combating money laundering and adhering to international sanctions.

The platform's unwavering stance on privacy has garnered support from crypto luminaries like Vitalik Buterin, who recently expressed his approval on X. "Privacy is normal," Buterin asserted. "And railgun makes it much harder for bad actors to join the pool."

As a testament to its growing popularity and widespread adoption, Railgun's total transaction volume has surged to an impressive $962.8 million, according to data from Dune Analytics. The value locked on Ethereum, where the majority of the protocol's activity takes place, has also surpassed $25 million.

This surge in activity has been accompanied by a significant increase in the value of Railgun's native token, RAIL. The token soared on April 15 after news broke that Buterin had transferred 100 ETH, worth approximately $325,000, to the Railgun ecosystem. RAIL is currently trading at $1.18, representing an 86.3% increase over the past seven days.

Railgun's robust privacy features, coupled with its recent endorsement by Vitalik Buterin, have propelled the protocol to new heights. As it approaches the $1 billion transaction volume milestone, Railgun continues to demonstrate its unwavering commitment to user privacy and compliance with international sanctions.