Despite Vitalik's Backing Railgun (RAIL) Price Faces Jeopardy

Despite receiving crucial support from Ethereum co-founder Vitalik Buterin, Railgun (RAIL) finds itself in precarious waters due to its association with the notorious Lazarus Group, a cyberhacker outfit reportedly linked to North Korea's government.

While Buterin's backing initially propelled RAIL token prices upwards by over 100%, concerns loom large over its future prospects.

Railgun's Association With The Lazarus Group

The Lazarus Group's nefarious activities have drawn significant attention, particularly after their involvement in the $99.7 million hack of Harmony's Horizon Bridge in June 2022.

This incident underscored vulnerabilities in centralized systems susceptible to social engineering attacks, a tactic frequently employed by the Lazarus Group. Following the hack, the group funneled the exploited funds through Tornado Cash, a decentralized mixer similar to Railgun.

However, Tornado Cash faced sanctions from the US Office of Foreign Assets Control (OFAC) in August 2022, prompting the funds to be redirected to Railgun, positioning the project under heightened regulatory scrutiny.

Furthermore, another Lazarus Group attack in March 2022 resulted in the loss of $540 million through an exploitation of the Ronin cross-chain bridge. Railgun's ties to such illicit activities raise red flags, potentially mirroring the fate of Tornado Cash.

RAIL Surges Post Vitalik's Endorsement

Despite the recent surge in RAIL token prices following Buterin's endorsement and a 100 ETH donation, the project's future remains uncertain.

Regulatory setbacks akin to those faced by Tornado Cash could impede Railgun's development trajectory, highlighting the inherent risks associated with its affiliations.