Vitalik Buterin, the founder of Ethereum (ETH), has emphasized the importance of on-chain privacy in light of his recent transaction using the Railgun protocol. According to data from Arkham Intelligence, Buterin transferred 100 ETH using the privacy protocol. This move has been seen as a significant endorsement for Railgun, an EVM privacy protocol that enables private transactions in the decentralized finance (DeFi) space. Buterin has been actively engaging with Railgun over the past six months, making small ETH transactions on a monthly basis.

In response to a post by crypto reporter Colin Wu, Buterin stated, “Privacy is normal.” He went on to explain that Railgun utilizes the privacy pools protocol, which makes it more difficult for malicious actors to compromise users’ privacy when joining the pool. Following Buterin’s endorsement, the price of RAIL, the utility token of the Railgun protocol, surged from $0.58 to $1.56, representing a 168% increase.

It is worth noting that Railgun was previously mentioned by the FBI in connection with North Korean hackers, specifically the Lazarus Group, who allegedly used the protocol for money laundering. In January 2023, North Korean cyber actors reportedly laundered over $60 million worth of stolen Ethereum using the Railgun privacy protocol. Some of the stolen funds were then converted to Bitcoin and sent to various virtual asset service providers.

Railgun has emerged as a viable alternative to Tornado Cash, another privacy protocol, after the US Treasury imposed sanctions on Tornado Cash due to its alleged use by the North Korean Lazarus Group for money laundering activities.

To stay updated with the latest news and developments in the cryptocurrency space, subscribe to our email alerts. Remember to exercise caution and conduct thorough research before making any high-risk investments in Bitcoin, cryptocurrencies, or digital assets. All transfers and trades are undertaken at your own risk, and any losses incurred are your responsibility. The Daily Hodl does not provide investment advice or endorse the buying or selling of cryptocurrencies or digital assets. Please be aware that The Daily Hodl engages in affiliate marketing.