Tornado cash alternative Railgun denies claims of “laundering activities” on the platform 

Table of Contents

• Rail price action 

The FBI agency accused that Railgun platform was used by some bad actors to launder cryptocurrencies but the Railgun team dismissed all such allegations. 

As we know, the popular Ethereum network-based crypto transaction privacy protocol Tornado Cash was banned by the US authorities in Aug 2022. The Office of Foreign Assets Control of the U.S. the Department of the Treasury alleged that the Tornado Cash platform failed to prohibit the bad actors’ activities on the platform & that helped laundering of billions of money. 

Just a few days ago, Ethereum co-founder Vitalik Buterin praised Railgun as the best crypto transaction privacy protocol and said that the platform can’t be used by bad actors because of the use of privacy pools protocol by the Railgun platform.

This Defi protocol was founded in Jan 2021 and the developer team used zero-knowledge (ZK) cryptography to protect wallet balances, transaction history and transaction details allowing users to use decentralised apps (DApps) on Ethereum or other supported chains while remaining private.

Following Vitalik’s tweet, many people started to use Railgun and also showed significant interest in Railgun token.

A Chinese crypto blogger Colin Wu reported that, In January 2023, the US FBI also claimed that North Korean cyber attackers used Railgun to launder more than $60 million worth of stolen Ethereum in June 2022. 

The Railgun responded against these allegations officially and confirmed that the sanctioned crypto addresses were already blocked by the Railgun team and also it was a false allegation.

Rail price action 

Following Vitalik’s tweet on Railgun, the trade price of Rail token surged by nearly 217% to $1.78 from $0.56. 

The current trade price of this token is $1.14 which is 69% higher over the last 7 days of trade price. 

Read also: Departure of executives from the OKX crypto exchange raised some big questions