Tornado Cash '100ETH' Pool TVL Drops 40% Amid ProveX Project Activity

The TVL in Tornado Cash's '100ETH' pool dropped by 40% in the past week, according to onchain analytics. Over 120,000 ETH was moved from the pool during the period. Analysts have attributed the movement to activities linked to Richard Heart, a well-known crypto developer.

Onchain researchers have noted that the wallet associated with the withdrawals is likely connected to Heart's new project, ProveX. The ProveX initiative aims to enable trustless, peer-to-peer transactions using zero-knowledge proofs. Heart has previously moved large volumes of ETH through Tornado Cash, according to public records.

The movement has raised questions about the use of privacy tools and their potential misuse. Tornado Cash, a non-custodial mixer, has been the subject of legal scrutiny in recent years. Its co-creator, Roman Storm, faces sentencing in the U.S. for a money-transmitting conspiracy charge.

Why Did This Happen?

Tornado Cash's TVL decline coincides with heightened enforcement against privacy tools. U.S. authorities have pursued legal action against developers of such tools, alleging they are used for illicit activities. The Department of Justice's case against Roman Storm has drawn support from industry figures, including Ethereum co-founder Vitalik Buterin.

Buterin has argued that privacy tools are necessary to counter data exploitation and maintain digital rights. He has personally contributed to Storm's legal defense and defended the importance of software that protects user information.

How Did Markets React?

The broader crypto market has seen risk-off positioning, with spot Bitcoin ETFs posting significant outflows in early 2026. Investors appear to be shifting capital away from crypto assets amid fading expectations of rate cuts and rising geopolitical tensions.

Spot Ethereum ETFs also posted weekly outflows, indicating a broader retreat from risk assets. Market participants are waiting for clearer macroeconomic signals before adjusting their positions.

What Are Analysts Watching Next?

The ProveX project is under close scrutiny as its use of Tornado Cash raises questions about the legitimacy of its operations. Analysts are watching whether the project will be linked to further regulatory action or face enforcement from U.S. or international authorities.

At the same time, the legal outcomes for developers like Roman Storm and Alexey Pertsev are being closely watched by the industry. Advocacy groups and crypto entities are calling for legislative clarity to protect software developers from criminal liability for creating privacy tools.

As ProveX prepares to launch, attention is focused on its governance model and whether it will avoid the pitfalls of previous projects. Early investors and token allocations may be key factors in determining the project's success.

The ongoing debate over privacy in crypto has also drawn public figures into the discussion. U.S. President Donald Trump has indicated openness to reviewing cases involving crypto developers, which could impact legal outcomes.

In parallel, new projects like Mutuum Finance are advancing through security audits and presale phases, showing continued interest in DeFi despite regulatory pressures. Their success will depend on market adoption and regulatory clarity.