Railgun (RAIL) Price At Risk Despite Vitalik’s Vital Support, Here’s Why

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In an exciting development, Ethereum co-founder Vitalik Buterin’s endorsement of the coin mixer Railgun has sparked much debate about its upcoming venture. However, concerns have arisen after reports surfaced that North Korea’s Lazarus Group, a notorious cybercrime organization, is using the platform for illicit activities. This revelation poses a major challenge to Railgun, despite Buterin’s recent backing of the project.

In the meantime, it’s important to mention that Railgun’s native token, RAIL, experienced a 100% increase in value after Ethereum’s co-founder endorsed the platform. Yet, investors should be aware of potential risks for a significant price drop. These risks mainly stem from RAIL’s association with the notorious group mentioned earlier.

Lazarus Group’s Ties To Railgun

According to the FBI’s confirmation, it is believed that the Lazarus Group, a hacking organization suspected to be linked to the North Korean government, orchestrated the June 2022 cyberattack on Harmony’s Horizon Bridge. The attack led to a significant theft of $99.7 million worth of cryptocurrency, leaving the crypto community reeling from the aftermath.

Previously, it was noted that the bridge was excessively reliant on a single point of control, making it susceptible to social engineering attacks, which are frequently used by the Lazarus Group. However, no preventative actions were initiated, leading to the major exploit incident referred to earlier.

After the attack, the Lazarus Group moved the stolen funds through Tornado Cash, a decentralized Ethereum mixer resembling Railgun. However, due to OFAC’s sanctions against Tornado Cash in August 2022, the funds were shifted to another privacy-focused DeFi protocol called Railgun – an alternative to Tornado Cash. This incident highlights Railgun’s connection to the infamous Lazarus Group and could potentially attract regulatory attention and risks.

In a related event, the Lazarus Group carried out another attack that coordinated with the previously mentioned incident, leading to the theft of $540 million in funds. This attack targeted the Ronin cross-chain bridge in March 2022.

Railgun (RAIL) Rallies Following Vitalik’s Support

At present, RAIL tokens have experienced a significant increase of 129.24% within the last 24 hours, currently valued at $1.28 each. The primary reason behind this price jump is Vitalik’s public support for the project, accompanied by his donation of 100 Ether to it.

Despite Railgun’s recent progress, its connection to the notorious gang mentioned earlier might lead to major issues for the project and its token. This is illustrated by Tornado Cash’s run-ins with sanctions. Consequently, Railgun could experience a significant setback.

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2024-04-16 09:23