US Senators, FBI Aren’t Opposed to Crypto Privacy: Railgun Contributor

Phuong Kieu  - News Writer
Last updated: June 13, 2024
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US Senators, FBI Aren’t Opposed to Crypto Privacy: Railgun Contributor
Radar Rundown
  • The US officials are not opposed to privacy-focused crypto protocols.

  • Railgun, a DeFi privacy protocol, emphasizes technology integrity to prevent misuse by bad actors, distinguishing itself from others.

  • While recent actions against platforms like Samourai Wallet may indicate regulatory scrutiny, the crypto privacy concept hasn’t received widespread resistance.

According to Railgun advocate and researcher Alan Scott Jr., intelligence agencies and US senators may not be as opposed to a privacy-driven crypto protocol as they may seem. 

When speaking with Cointelegraph at ETH Global in Sydney on May 2, Scott said he hadn’t seen hints of the campaign against crypto privacy from his interactions with the FBI and senators in Washington. 

“The upper echelons of government have smart people who want to do the right thing and protect the people,” Alan Scot Jr.

Railgun is a privacy-driven protocol that employs smart contracts to ensure private transactions for DeFi (decentralized finance) users. It is on the Ethereum network and various of its layer-2 networks, such as Arbitrum and Polygon.

Unfortunately, people often confuse Railgun with other crypto privacy protocols. These include Tornado Cash, which has had issues with the authorities in recent years. 

On April 17, an X account claiming to be the official account for Railgun denied being employed by U.S.-sanctioned entities, like North Korea, to launder illicit crypto. This was a response to the FBI’s accusation that hackers laundered over $60 million in Ether (ETH) through Railgun. This happened during the 2022 Harmony Bridge exploit.

However, Railgun stated that its zk-proof technology and ‘Private Proofs of Innocence’ solutions prohibit malicious actors from exploiting its protocol.

Moreover, Scott said that crypto users should keep in mind that the FBI is a huge multidimensional organization. It is less concerned with privacy protocols and more alarmed by malicious actors attempting to commit financial crimes. He also mentioned that it was a terrific thing for them to be concerned about.

Scott described his talks with US politicians and regulators as mainly positive. The majority of them appear to be sincerely trying their best to comprehend the current state of the crypto world.

Every time we talk about crypto or DeFi, they ask knowledgeable questions and try to understand the crypto tech, how it operates, and why people are embracing it, Scott stated.

On April 24, co-founders of the Bitcoin wallet and crypto mixer Samourai got arrested on money laundering allegations. According to the DOJ (Department of Justice), the platform facilitated over $100 million in money laundering transactions. In addition, it handled $2 billion in illegal transactions.  

Scott said that the concept of privacy in crypto isn’t facing much resistance despite the actions against mixers. These include Samourai Wallet and the continuing prosecution of the Tornado Cash Developer Roman Storm. 

Railgun is revolutionizing finance by removing intermediaries, and DeFi is an important and pleasing pursuit.”

“Privacy is a crucial part of that. So, while we’re championing for it and vocalizing its significance, the discourse on privacy might seem mundane as it is already an integral part of the traditional financial systems,” Alan Scot Jr.

Furthermore, he stated that it would be extremely unfortunate if the concept and application of privacy in crypto were illegalized.

“In essence, we have developed a highly accurate surveillance tool that allows real-time monitoring,” Soct.

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About the Author

Phuong Kieu

Phuong Kieu

News Writer

Phuong is a tech news writer who has formerly worked for several renowned publications. Due to her journalism background and love for technology, she helps her readers by covering technical news in simple and easy-to-understand words. Phunog spends most of her time reading or covering the latest tech news. In her free time, she uses social media and watch movies.

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