Railgun Denies Accusations of North Korea Association and Money Laundering

Railgun, a crypto privacy protocol, has recently come under scrutiny for alleged ties to North Korea and other US-sanctioned entities. However, the protocol has vehemently denied these accusations, stating that they are false and misleading.

The controversy arose after crypto reporter Colin Wu claimed that Railgun was being used by the North Korean hacker group Lazarus Group to launder digital assets. Wu referenced an FBI statement from January 2023 that accused Railgun of being used to launder stolen Ethereum. Railgun has refuted these claims, stating that the Lazarus Group cannot access their system due to their advanced security measures.

Despite these allegations, Railgun’s total volume is on the verge of reaching $1 billion, with data showing that it has already reached $962.81 million. The protocol’s popularity has been further boosted by an endorsement from Ethereum co-founder Vitalik Buterin, who praised Railgun’s privacy features.

Railgun, which was established in January 2021, uses zero-knowledge cryptography to protect users’ privacy while using decentralized apps. The recent introduction of Private Proofs of Innocence has further enhanced the protocol’s security measures.

As Railgun continues to grow in popularity and total volume, it remains to be seen how the controversy surrounding its alleged ties to sanctioned entities will impact its reputation in the crypto community.