Vitalik’s $2.9M ETH Move Reignites Privacy Focus

Buterin moved 1,009 ETH to Railgun, continuing his pattern of privacy-focused transactions.

Railgun offers DeFi privacy with compliance screening, contrasting older mixers like Tornado Cash.

His support boosted RAIL 15% and supported privacy as a core theme in Ethereum’s evolution.

A fresh transfer from vitalik.eth drew market attention, after Vitalik Buterin moved 1,009 ETH, worth about $2.9 million, to the privacy protocol Railgun. This happened on Ethereum’s mainnet, where Buterin has made similar transactions since 2024

Railgun’s Role in Privacy-Centered Transactions

The latest transfer routed 1,006 ETH to Railgun, another instance in which Buterin used the tool for discreet activity. Previous transfers funded donations and supported token purchases within the Ethereum ecosystem

Railgun operates as a “DeFi privacy toolkit” meant to shield user activity while allowing direct interaction with decentralized finance protocols. Unlike Tornado Cash, it includes screening features that deter illegal use, and developers designed it to help users maintain control of their funds.

Regulatory History

This renewed attention came as privacy tools continue to face regulatory pressure. Tornado Cash, once a leading privacy mixer, was sanctioned by the U.S. Treasury’s OFAC in August 2022 over alleged laundering activity

However, a federal appeals court decision led OFAC to lift those sanctions on March 21, 2025. That ruling shaped the current sector, as developers and analysts examined differences between older tools and newer models like Railgun.

Buterin’s Consistent Advocacy

Buterin and Ethereum developers have continued to argue for stronger privacy defaults. In April, Buterin posted recommendations for enhanced privacy on an Ethereum forum. Notably, he also praised Railgun in February for blocking a money-laundering attempt

Following the latest transfer, Railgun’s RAIL token rose about 15 percent, and Arkham Intelligence noted that Buterin holds over $700 million in ETH. His repeated use of the protocol kept attention on privacy as a recurring theme in the ecosystem.

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