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https://cryptopotato.com/railgun-denies-north-korea-ties-as-it-approaches-1b-total-volume/
Crypto privacy protocol Railgun has denied accusations that it is being used by North Korea and other United States-sanctioned entities to launder digital assets.
This development comes as the crypto privacy protocol nears $1B total volume.
Railgun Denies Lazarus Group Association
Responding to claims made by crypto reporter Colin Wu through an X post, Railgun denied allegations linking it to the North Korean hacker group Lazarus Group.
“The North Korean hacker group Lazarus Group is also a user of the coin mixer Railgun,” the post stated. “Railgun is seen as the main alternative to Tornado Cash after the sanctions were imposed on it,” the team added.
Wu’s post referenced an FBI statement from January 2023 that accused Railgun of being used to launder over $60 million worth of Ethereum stolen during the 2022 Harmony Bridge heist.
RAILGUN protocol: “Any suggestion that sanctioned individuals, governments, or entities such as North Korea have used RAILGUN have no evidence & are based only on speculation.” From 2023, all RAILGUN transactions go through a Private Proofs of Innocence check which verifies that…
— Wu Blockchain (@WuBlockchain) April 16, 2024
“This is not true, and it’s false reporting,” Railgun stated. The team affirmed that the Lazarus group can’t access the Railgun system due to its ‘Private Proofs of Innocence’ system, which became operational over a year ago. Railgun also dismissed the accusation as a mistaken and false claim.
This development comes amidst a surge in Railgun’s total volume, which is about to break the $1 billion mark. Data from Dune Analytics reveals that Railgun has reached $962.81 million in total volume, with its total value locked on Ethereum surpassing $25 million.
Buterin’s Endorsement of Railgun
The protocol’s rise in popularity has been further propelled by an endorsement from Ethereum co-founder Vitalik Buterin, who recently defended it while praising its privacy features.
“Privacy is normal,” Buterin affirmed. “Railgun uses the privacy pools protocol, which makes it much harder for bad actors to join the pool without compromising users’ privacy.”
Meanwhile, 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.
Railgun, established in January 2021, leverages zero-knowledge cryptography to shield wallet balances, transaction history, and transaction details. This allows customers to use decentralized apps (DApps) while safeguarding their privacy.
The introduction of Private Proofs of Innocence in January 2023 has increased Railgun’s security measures as it now uses cryptographic assurance to verify the legitimacy of funds entering its smart contract.