Cryptocurrency protocol Railgun has denied that it is being used by North Korea and other organizations under US sanctions to launder cryptocurrency, claiming that its zero-knowledge technology prevents this and that the allegations are "unsubstantiated."
This comes as the total value of Railgun's platform is approaching the billion-dollar mark, helped by recent X-posts by #BTC co-founder Vitalik Buterin praising and defending the privacy protocol.
Railgun, founded in January 2021, uses zero-knowledge cryptography (ZK) to protect wallet balances, transaction history, and transaction details, allowing users to use decentralized applications (DApps) on Ethereum and other supported blockchains while maintaining privacy. They can do this.
Elliptic, a blockchain security company, once called Railgun "the best alternative to Tornado Cash" after the U. S. government imposed sanctions against cryptomixers.
In January 2023, the FBI claimed that North Korean cyber attackers used Railgun to launder more than $60 million in Ether (ETH) from the Harmony Bridge heist in 2022.
In an X-message sent to cryptojournalist Colin Wu, Railgun denies using the Lazarus privacy protocol and calls the message "false.
First, this group cannot use RAILGUN thanks to the Private Innocence Evidence system implemented over a year ago.
Second, it is a false accusation," she added.
The Private Proof of Innocence system (also known as Private POI) was launched in January 2023 by researcher and co-author Railgun.
It cryptographically guarantees that funds entering the Railgun smart contract do not belong to a known list of undesirable transactions or participants, and users must prove to ZK that their funds do not belong to a predefined list of transactions or wallets.
Buterin also defended Railgun, arguing that "privacy is not an issue" and that the pool's privacy protocols "make it much more difficult for bad players to join the pool.
According to Dune Analytics, Railgun's total transaction volume totaled $BTC
The token is currently trading at $1.18 and is up 86.3 percent over the past seven days.
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