Zcash Drops 21% From Peak Following ETF Outflows, North Korean Heist Link

Zcash drops — The privacy-focused cryptocurrency Zcash (ZEC) has fallen 21% from its recent high of $1,698, a correction attributed to significant outflows from a major exchange-traded fund and reports of a North Korean-linked hack routing funds through its shielded pool.

ZEC was trading around $1,340 on October 1, 2026, according to market data. The sharp pullback follows a period of notable gains for the asset. Analysts point to two primary catalysts for the sell-off.

First, the Grayscale Zcash Trust (ZCSH) reportedly saw substantial outflows, removing a key source of institutional buying pressure. Second, blockchain intelligence firm Elliptic identified a $60 million hack by the North Korean Lazarus Group, with some of the stolen funds allegedly laundered through Zcash’s shielded transactions.

Despite the downturn, some market observers suggest the rally may not be over, framing the drop as a potential buying opportunity. The price action highlights the sensitivity of privacy coins to both fund flows and regulatory scrutiny over their potential use in illicit finance.