Vitalik Buterin Deepens Support for Blockchain Privacy by Using Railgun Again

Ethereum co-founder Vitalik Buterin has made another high-profile statement in favor of privacy in decentralized finance (DeFi) by using the privacy protocol Railgun for a significant transaction. On June 4, Buterin transferred over $2.6 million in Ether (ETH) and USDC through Railgun, a tool designed to shield transaction details and user identities on public blockchains. The move further emphasizes Buterin’s commitment to enhancing privacy infrastructure on Ethereum and supporting tools that allow for on-chain anonymity without sacrificing compliance.

Railgun is a relatively recent innovation in the privacy tech space, offering zero-knowledge proof-based shielding similar to Tornado Cash but with key improvements. Unlike Tornado Cash, which was sanctioned by the U.S. government in 2022, Railgun incorporates a “private proof of innocence” feature. This allows users to prove they are not interacting with sanctioned addresses without revealing their identities—striking a balance between privacy and regulatory compliance. This architectural difference is partly why the protocol has been gaining traction, particularly among developers and privacy advocates.

This is not the first time Buterin has used Railgun. Back in March 2025, he moved approximately $500,000 worth of crypto through the protocol, indicating his interest goes beyond experimentation and reflects a deeper vision for Ethereum’s future. In several public statements and blog posts, Buterin has outlined the importance of making privacy a standard layer in blockchain technology. He argues that just as encryption became default in web browsing, privacy should become a foundational component in blockchain-based financial systems.

The broader Ethereum development community appears to share this sentiment. Multiple teams are working on innovations like stealth addresses, zero-knowledge rollups, and other privacy-preserving technologies. These efforts are gaining momentum at a time when regulatory perspectives are slowly evolving. The recent overturning of sanctions against Tornado Cash by a U.S. federal appeals court in March 2025 marked a pivotal moment for privacy protocols, potentially paving the way for more tools like Railgun to thrive without fear of immediate regulatory backlash.

The market has also responded to Buterin’s continued endorsement of privacy solutions. Following the recent transaction, the native token of the Railgun protocol, RAIL, surged by 15%, highlighting the community’s confidence in the tool and its broader utility. As demand for user privacy grows across DeFi platforms, tools like Railgun are expected to play an increasingly important role in the ecosystem, not just for individual users but also for institutional actors seeking secure and private blockchain interactions.

Buterin’s consistent actions send a clear message: privacy is not only compatible with decentralization and compliance—it is essential. As Ethereum continues to evolve, the integration of robust privacy features will likely define its competitiveness and user trust in the coming years.