Blockchain tracking platform Lookonchain recorded a wave of Ethereum transactions linked to Tornado Cash, raising questions about potential fund cover-ups.
According to the data, three new wallet addresses withdrew a combined 4,920 ETH valued at roughly $16.25 million and sold the tokens at $3,302 per ETH.
Three new wallets just withdrew 4,920 $ETH($16.25M) from https://t.co/11PfRBP2j2 and sold at around $3,302.
Is this Richard Heart (@RichardHeartWin, founder of HEX, PulseChain, and PulseX) selling — or hackers?
For context, Richard Heart bought 162,937 $ETH($619M) at $3,800 in… pic.twitter.com/kNdLLRofwy
— Lookonchain (@lookonchain) November 7, 2025
The new transactions followed earlier 2024 activity that on-chain analysts tied to Richard Heart, the founder of HEX, PulseChain, and PulseX, who purchased 162,937 ETH, worth about $619 million, earlier in 2024 at an average of $3,800 per ETH and deposited the full amount into Tornado Cash two days before the latest withdrawals.
Further research revealed a sequenced pattern of 100 ETH inflows, comprising nearly $342,000 in Tornado Cash to wallet 0x3dE…8ff1A…1000, equivalent to 800 ETH (approximately $ 2.7 million).
Over the course of five hours, the same wallet had also made a total of 3,186 ETH (worth $10.58 million), 10.54 million USD, and 0.11 ETH to wallets 0x3E4…AF44a….
Moreover, analysts noted that this payment pattern mirrored a layering process, a common technique used to separate digital assets across multiple addresses to conceal the source of funds.
SharpLink Cuts Ethereum Amid Market Drop
Adding to the report, SharpLink Gaming, a major Ethereum treasury company, has begun reducing its holdings amid market pressure. On-chain data shows the firm moved 4,364 ETH, valued at $14.47 million, to OKX following the redemption of 5,284 ETH worth $17.52 million.
The wallet currently retains 791.07 ETH ($2.65 million) and a fractional amount of LSETH, according to Arkham Intelligence. The transaction marked the only recent deposit from the company’s address. SharpLink’s market value has fallen sharply, declining 12% over the past week, following an 8% drop on Thursday.
The firm had previously purchased $78.3 million in ETH at FalconX on October 27 and invested most of its assets in Liquid Collective and Figment. The 30% drop in Ethereum prices since October, however, has hit the treasury values of institutional holders hard, as the managed net asset value at SharpLink is now 0.82.
This article was originally published as Tornado Cash ETH Transfers Under Watch as SharpLink Gaming Offloads Holdings on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.
