Crypto Privacy Protocol Railgun Refutes Accusations Of Being Used For Money Laundering

According to CryptoPotato, Railgun, a crypto privacy protocol, has refuted allegations that it is being utilized by North Korea and other entities sanctioned by the United States to launder digital assets. The denial comes as the protocol approaches a total volume of $1 billion. Railgun responded to claims made by crypto reporter Colin Wu, denying any association with the North Korean hacker group, Lazarus Group. The post by Wu referenced an FBI statement from January 2023, which accused Railgun of being used to launder over $60 million worth of Ethereum stolen during the 2022 Harmony Bridge heist. Railgun stated, 'Any suggestion that sanctioned individuals, governments, or entities such as North Korea have used Railgun have no evidence & are based only on speculation.' The team further clarified that the Lazarus group cannot access the Railgun system due to its 'Private Proofs of Innocence' system, which has been operational since 2023. The protocol's team dismissed the accusation as a false claim. This development comes as Railgun's total volume is nearing the $1 billion mark. Data from Dune Analytics shows that Railgun has reached $962.81 million in total volume, with its total value locked on Ethereum surpassing $25 million. The protocol's rise in popularity has been further boosted by an endorsement from Ethereum co-founder Vitalik Buterin, who recently defended it while praising its privacy features. Buterin stated, 'Privacy is normal. Railgun uses the privacy pools protocol, which makes it much harder for bad actors to join the pool without compromising users’ privacy.' Buterin has transferred 100 ETH (approximately $325,000) to Railgun within the last two days, according to data from Arkham Intelligence. Over the past six months, he has engaged with Railgun several times, regularly interacting with the platform using small amounts of ETH each month. Established in January 2021, Railgun uses zero-knowledge cryptography to protect wallet balances, transaction history, and transaction details. This enables customers to use decentralized apps (DApps) while maintaining their privacy. The introduction of Private Proofs of Innocence in January 2023 has enhanced Railgun’s security measures as it now uses cryptographic assurance to verify the legitimacy of funds entering its smart contract.