Ethereum co-founder Vitalik Barterin transferred approx. $ 2.6 million worth of tokens through the privacy-focused protocol Railgun Wednesday, in what appears to be both a routine economic transaction and a quiet endorsement of blockchain-based privacy.
It is unclear how the funds sent to Railgun – which included a mixture of ETH and USDC – were eventually used. Railgun is a tool designed to obscure activity on the chain, enabling investors to use decentralized funding (DEFI) protocols without transactions linked to their personal crypto drawing books.
This is not the first time the butterin has used the protocol. In March, he moved about $ 500,000 through Railgun in a similar transaction. While Butterin has not commented directly about the latest transfer, his continued use of the tool emphasizes his long-standing advocate for privacy as a core pillar in Ethereum’s infrastructure.
Butterin and other Ethereum developers have repeatedly argued that users’ privacy should be treated as a standard feature, not an optional addition. In an April post for an Ethereum Developer Forum, butterin outlined several recommended steps to make blockchain more private.
The Ethereum community’s push for privacy comes in the midst of the ongoing privacy control to preserve blockchain tools from regulators. While Railgun aims to enable legitimate private transactions, similar tools have drawn legal brand.
Tornado Cash-WHEN THE MOST USED ETHERUM-BASED MIXER-SENGED SANGERED BY THE US MINISTRY OF THE TAX CONSULT OF FATERIAL ALTISTRY CONTROL (OFAC) in August 2022.
On March 21, 2025, however, Ofac officially lifted the sanctions against Tornado Cash following a federal appeal law that the agency had exceeded its authority.
Railgun, described on its website as a “Defi Privacy Toolkit”, represents a recent generation of privacy systems built on Ethereum that combines zero-knowledge cryptography with smart contract composing. This recent system, as opposed to Tornado Cash, incorporates screening features to deter illegal transactions.
However, in February, Barterin praised Railgun for his successful prevention of a money attempt.
Also, unlike Tornado Cash, which is primarily built to help users transfer funds anonymously, railgun users help interact directly with defi protocols – which allows investors to transaction discreetly while maintaining full control over their funds.
The project has received support from some advocates and developers of privacy, who claim that tools such as Railgun can serve legal use such as economic privacy for activists, journalists or high-net-value-crypto “whales” who want to trade with estimates.
After Barterin’s latest transaction, Railgun’s native token, rail, experienced a 15% uptick over the last 24 hours.
