A wallet linked to Tornado Cash moved approximately $3.73 million in Ethereum onto Hyperliquid over a 20-hour period and converted the proceeds into Zcash (ZEC), according to on-chain analytics platform Lookonchain. In total, 1,670 ETH — valued at around $3.73 million — was transferred from the crypto mixer to the trading platform, where it was sold for 2,959 ZEC, worth approximately $3.73 million at the time of acquisition. Lookonchain flagged the transaction in a post on X on November 8, 2026, while Arkham separately tracks the ETH-to-ZEC activity.

Tornado Cash is a cryptocurrency mixer that obscures the connection between sending and receiving addresses on Ethereum. The protocol was sanctioned by the U.S. Treasury's Office of Foreign Assets Control in August 2022, and those sanctions were removed in March 2025 after a U.S. federal appeals court ruled that the mixer's immutable smart contracts could not be treated as sanctionable property. ZEC is the native token of Zcash, a network focused on private transactions: it supports shielded transfers, in which the sender, recipient, and amount are not publicly visible on-chain, alongside ordinary transparent transactions. Hyperliquid operates a decentralized trading platform known for perpetual futures.

The transaction stands out because the wallet functioned as more than a conduit for moving funds between platforms. Rather than simply relocating ETH, the address sold a substantial amount of it and used the full proceeds to build a ZEC position. That behavior is also what made the flow visible to observers: mixer-linked addresses carry established flags in analytics tooling, which is how ETH leaving the mixer gets detected and reported by tracing firms — as occurred here.

1,670 ETH Deposited and Sold on Hyperliquid

Over the past 20 hours, 1,670 ETH valued at roughly $3.73 million was deposited into Hyperliquid from Tornado Cash, Lookonchain said in a post on X. The funds were then sold and used to buy ZEC, with Lookonchain reporting that the wallet acquired a total of 2,959 ZEC — an amount equivalent to around $3.73 million. The deposits and subsequent purchases all occurred within a single 20-hour window, according to the analytics firm.

It appears the hacker is selling ETH to buy ZEC!

Over the past 20 hours, 1,670 $ETH ($3.73M) from #TornadoCash was deposited into Hyperliquid and sold to buy 2,959 $ZEC ($3.73M).

— Lookonchain (@lookonchain) November 8, 2026

The activity represents a direct Ethereum-to-Zcash conversion. Instead of withdrawing ETH from the mixer and holding it, the wallet routed the funds through Hyperliquid and swapped them into another cryptocurrency, making the venue an intermediary rather than a storage destination. Based on the reported figures, 1,670 ETH was transferred out of Tornado Cash, and 2,959 ZEC was subsequently purchased through the corresponding trades.

Arkham Tracks the ETH-to-ZEC Activity

Lookonchain also shared an Arkham entity link associated with the activity, labeled ETH-to-ZEC. The tracking page provides an additional reference for examining the wallet's on-chain movements, aggregating the address's activity in one place.

According to Lookonchain, the value on both sides of the trade was approximately $3.73 million. These are reported transaction values at the time of the swap and do not indicate whether the wallet still holds the same amount of ZEC.

The swap also spans a difference in traceability between the two networks: Ethereum records every transfer on a public ledger, while Zcash offers shielded transfers that conceal the sender, recipient, and amount, alongside transparent addresses that remain publicly viewable. The report documents the swap itself and does not specify whether the purchased ZEC remained on Hyperliquid or was moved to external addresses.

The use of Tornado Cash is a pertinent data point for tracing the funds, but it is not, on its own, sufficient to determine how the assets were obtained or to identify who controls the wallet.

ZEC Becomes the Destination for the $3.73M ETH Sale

The defining feature of the activity is the conversion itself. Within the 20-hour trading window, the wallet gave up 1,670 ETH and received 2,959 ZEC — not a simple transfer between addresses, but a substantial conversion from ETH to ZEC, carried out with the reported proceeds of the ETH sale.

Lookonchain characterized the activity as an apparent hacker selling ETH to acquire ZEC. The transaction data, however, only confirms the movement of the funds and the reported swap. It does not establish who owns the wallet or the origin of the assets beyond their connection to Tornado Cash. Whether the ZEC remains on the platform or is moved onward is not addressed in the report; further on-chain updates from Lookonchain or Arkham would be the reference points for any additional movements tied to the address.

This article originally appeared on Crypto Ninjas.