Railgun Proves Vitalik Buterin Right, Foils Inferno Drainer Scammers\' Laundering Attempt
- PHPzOriginal
- 2024-07-16 15:31:10580browse
The right to privacy has always been a core part of the crypto ethos, leading to the proliferation of several tools to help users obscure their identity
Ethereum co-founder Vitalik Buterin had endorsed Railgun, a crypto mixer known to be used by North Korean hackers, in April 2024. Buterin had touted the privacy tool’s ability to block bad actors from using the service.
Three months later, a recent foiled money laundering attempt may have just proven the Ethereum co-founder right.
According to a report by crypto tracking platform MistTrack, Railgun successfully foiled an attempt from an Inferno Drainer phishing scammer to launder 174 ETH through its platform. The blocked funds were part of a 365 ETH move by the scammers.
“Nice work by Railgun inoutsmarting the scammers and their attempt to use the mixer to launder funds,” MistTrack said in an X post on Wednesday.
The attackers were left with no choice but to withdraw the funds they had tried to obfuscate on the platform back to their wallet, the report adds.
The recent foiled laundering exploit highlights the growth of crypto privacy tools and the effectiveness of Railgun’s privacy pools architecture to preserve privacy while preventing abuse by bad actors.
Crypto mixers have been coming under increasing fire from regulators in recent years due to their use by bad actors to obscure the origin of illicit funds. In March 2023, the U.S. Justice Department announced charges against a woman who allegedly helped North Korean hackers launder stolen crypto through Railgun.
However, Buterin has argued that these tools are necessary to protect users’ privacy from government overreach and other threats.
“There is a need for privacy tools that are not easily abused by bad actors. Railgun is one such tool, and I believe it has the potential to play a significant role in preserving crypto users’ privacy,” Buterin said in April 2024.
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