Railgun (RAIL) Price Is At Risk Despite Vitalik’s Vital Support, Here’s Why
In an intriguing turn of events, following Ethereum co-founder Vitalik Buterin’s vital support for cryptocurrency mixer Railgun, a wave of speculation has arisen around the future venture of the DeFi platform by the Lazarus Group, a cyber hacker group in North Korea. platform where illegal activities are carried out. This poses a significant threat to the future of the cryptocurrency mixer, despite Buterin’s recent vital support for the project.
Meanwhile, it is worth noting that the platform’s native token, RAIL, exhibited gains of over 100% after the Ethereum co-founder supported Railgun. However, the token still carries a significant risk of price decline due to its ties to the aforementioned vigilante outfit.
Lazarus Group’s Ties to Railgun
The Lazarus Group, a hacker group that some say is run by the North Korean government, was behind the June 2022 hack of Harmony’s Horizon Bridge, a cross-chain bridge service, as confirmed by the FBI. The attack reportedly resulted in a loss of $99.7 million and the crypto community is grappling with the blow.
Concerns have previously been raised that the bridge is overly centralized, meaning it is particularly vulnerable to social engineering attacks, a common attack vector for the Lazarus Group. Despite this, no proactive measures were taken, leading to the above-mentioned mass exploitation attack.
Specifically, following the attack, Lazarus Group programmatically structured the exploited funds through Tornado Cash, a decentralized Ethereum-based mixer similar to Railgun. However, with Tornado Cash facing sanctions by the US Office of Foreign Assets Control (OFAC) in August 2022, the funds were soon restructured into another privacy-based DeFi protocol called Railgun, an alternative to Tornado Cash. This highlights Railgun’s ties to rogue syndicate Lazarus Group and further exposes the coin mixer to regulatory scrutiny and risks.
Similarly, another fraud attack by Lazarus Group coincided with the above-mentioned date and resulted in the loss of funds worth $540 million. This exploit attack involved another cross-chain bridge known as Ronin in March 2022.
Also Read: Crypto Prices Today April 16: Bitcoin Drops to $62K, Ethereum Drops to $3000, SOL Crashes
Railgun (RAIL) Rally After Vitalik’s Support
As of this writing, the Railgun (RAIL) token has gained 129.24% in value in the last 24 hours and is currently trading at $1.28. This increase in price is primarily attributed to Vitalik’s support of the project and is accompanied by the Ethereum co-founder’s donation of 100 ETH.
However, due to Railgun’s ties to the aforementioned vigilante outfit, the project and its token may face a significant setback in the future, as seen with Tornado Cash facing sanctions. This could potentially be a setback for Railgun, despite its recent pace of development.
Also Read: US Market Crash Disrupts Crypto Market Recovery, Bitcoin ETFs See Net Outflow
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