Railgun Denies Ties to North Korea as Crypto Protocol Approaches $1B in Volume
NAIROBI (Coinchapter.com) – Crypto privacy protocol Railgun denies ties to North Korea and other U.S.-sanctioned entities to launder cryptocurrency. The protocol’s founders argue that its zero-knowledge-based technology prevents such misuse and that the allegations lack evidence.
Source: Railgun
Railgun’s denial of ties to sanctioned entities approaches a significant milestone, with its total volume nearing the $1 billion mark. The protocol’s rise in prominence has been bolstered by a recent endorsement from Ethereum co-founder Vitalik Buterin, who praised and defended the privacy-focused platform.
Railgun’s Zero-Knowledge Approach Shields Users’ Privacy
Railgun, founded in January 2021, utilizes zero-knowledge (ZK) cryptography to protect wallet balances, transaction histories, and details. This technology allows users to interact with decentralized applications (DApps) on Ethereum and other supported chains while maintaining their privacy. This technology has led blockchain security firm Elliptic to label Railgun as a “prime alternative to Tornado Cash” after the U.S. government imposed sanctions on the crypto mixer.
In response to the FBI’s allegations that North Korean cyber attackers used Railgun to launder more than $60 million worth of Ether from the 2022 Harmony Bridge heist, the protocol’s team has firmly denied the claims, calling them “false reporting.”
Company’s Growing Prominence Supported by Buterin
Railgun’s dedication to strong privacy-enhancing technologies is evident in its performance metrics across different blockchain ecosystems, according to Dune Analytics data. As of April 2024, the Total Value Locked (TVL) on Railgun’s Ethereum protocol stands at an impressive $25.58 million. This growth is bolstered by an increasing volume of transactions, with the platform approaching a total volume of $962.81 million.
Source: X
Recent attention from Ethereum co-founder Vitalik Buterin has further bolstered the protocol’s growth. On April 15, Buterin transferred 100 ETH, worth approximately $325,000, to Railgun, highlighting his support for the privacy-focused platform. This action boosted the native token (RAIL), increasing its price by 86.3% in the last week. It is now trading at $1.18.
RAIL/USD 1-day price chart. Source: CoinGenko
Despite recent developments, Railgun’s native token, RAIL, is currently trading at $1.17, reflecting a 12.88% decrease over the past day. Despite this decline, the overall market capitalization stands strong at $67.2 million, ranking it #2624 globally. The trading volume has surged by 88.65% in the last 24 hours, reaching $2.11 million.
In conclusion, Railgun denies ties and any involvement with North Korea and other sanctioned entities. Above all, its growing prominence and support from figures like Vitalik Buterin suggest that its privacy-focused approach is gaining traction in the DeFi space.
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Filed under: Bitcoin - @ April 17, 2024 8:18 pm