Vitalik Buterin Used Railgun for a Secret Transaction Worth $2.6 Million!

Jakarta, Pintu News – Vitalik Buterin, co-founder of Ethereum , recently conducted a transaction worth approximately $2.6 million using Railgun, a privacy-focused DeFi protocol. This transaction, while seemingly routine, also signaled an indirect endorsement of the importance of privacy in blockchain transactions.

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Hidden Transactions with Railgun

Railgun uses zero-knowledge cryptography to hide activity on the blockchain, allowing users to interact with the DeFi protocol without revealing their wallet address. This is not the first time Buterin has used Railgun; he had previously transferred $500,000 via Railgun in March.

While Buterin has yet to make any public comments regarding this latest transaction, his actions are consistent with his continued advocacy for privacy as an integral part of Ethereum’s (ETH) future.

Buterin and other Ethereum (ETH) developers have emphasized that user privacy should be a built-in feature. In April, Buterin shared a detailed proposal on improving privacy in the Ethereum (ETH) ecosystem, highlighting the community’s push for secure and anonymous transactions.

Also read: Bitcoin (BTC) has the potential to reach $120,000 in 2025, what does Polymarket say?

Privacy Regulation and Acceptance

The use of privacy protocols has attracted the attention of regulators. Tornado Cash, the previous leading Ethereum (ETH) mixer, was sanctioned by the US Treasury Department’s OFAC in 2022 for alleged money laundering related to the Lazarus Group from North Korea.

However, the sanctions were lifted in March 2025 after a court ruled that OFAC exceeded its authority. Unlike Tornado Cash, Railgun incorporates compliance mechanisms, including transaction screening to prevent illegal activity.

In February, Buterin praised Railgun for stopping a money laundering experiment, highlighting its potential as a responsible privacy solution.

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Market Reaction and Future Implications

Railgun’s capabilities appeal to users seeking confidential DeFi access, including activists, journalists, and high-net-worth investors. Following Buterin’s latest transaction, Railgun’s native token, RAIL, jumped 15% in 24 hours, reflecting growing interest in privacy tools that balance discretion with compliance in decentralized finance.

Buterin’s support of Railgun and its focus on privacy indicates the direction Ethereum (ETH) may take in the face of regulatory challenges and increased privacy needs in the future.

Conclusion

Vitalik Buterin’s latest transaction using Railgun not only reaffirms his commitment to privacy in blockchain, but also highlights the importance of tools that enable security and anonymity in the ever-evolving financial ecosystem. It marks an important step in the evolution of DeFi, where privacy and compliance can go hand in hand.

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Reference

• Tokenpost. Vitalik Buterin Transfers $2.6 M via Railgun, Reinforcing Ethereum Privacy Focus. Accessed on June 5, 2025
• Featured Image: Cryptoslate