In January 2023, the FBI accused Railgun of laundering more than $60 million in Ethereum stolen from the 2022 Harmony Bridge hack.
Crypto privacy protocol Railgun has denied allegations that it is being used by North Korea and other entities subject to U.S. sanctions to launder digital assets.
The development comes as total transaction volume on the crypto privacy protocol approaches $1 billion.
Railgun denies links to Lazarus group
In response to questions raised by a well-known cryptocurrency content creator via Post X, Railgun denied allegations linking it to the North Korean hacker group Lazarus Group.
“North Korean hacker group Lazarus Group is also a user of the coin mixer Railgun,” the post states. “Following sanctions on Tornado Cash, Railgun is seen as a major alternative,” the team added.
Creator X’s post references a January 2023 FBI statement alleging that Railgun was used to launder money, saying that more than $60 million worth of Ethereum was stolen during the 2022 Harmony Bridge heist.
Railgun said, "This is not true, this is a false report". The team confirmed that the Lazarus group has been unable to access the Railgun system due to the "private proof of innocence" system that was put into operation more than a year ago. Railgun also refuted the allegation, calling it a false and false accusation.
The development comes as Railgun’s total transaction volume surges, and it is about to pass the $1 billion mark. Data from Dune Analytics shows that Railgun’s total transaction volume has reached $962.81 million, with a total value locked on Ethereum exceeding $25 million.
Buterin’s endorsement of Railgun
The protocol’s rise in popularity has been further fueled by an endorsement from Ethereum co-founder Vitalik Buterin, who recently defended the protocol while praising its privacy features.
“Privacy protocols are normal,” Buterin affirmed. “Railgun uses a privacy pool protocol, which makes it difficult for bad actors to join the pool without compromising user privacy.”
Meanwhile, according to Arkham Intelligence, Buterin transferred 100 ETH (roughly $325,000) to Railgun in the past two days. He has interacted with Railgun multiple times over the past six months, regularly using small amounts of ETH to interact with the platform each month.
Founded in January 2021, Railgun uses zero-knowledge cryptography to protect wallet balances, transaction history, and transaction details. This allows users to safely use decentralized applications (DApps) while protecting their privacy.
The launch of the “Private Proof of Innocence” system in January 2023 strengthens Railgun’s security measures as it now uses cryptographic guarantees to verify the legitimacy of funds entering its smart contracts. #Railgun #朝鲜黑客