An investigation has linked the team behind the recently launched memecoin to the recent hack of a cryptocurrency influencer’s account.
An analysis conducted by pseudonymous investigator ZachXBT revealed that Sol Team – the creators of the Solana-based CAT memecoin – hacked the X account of cryptocurrency influencer Gigantic-Cassocked-Rebirth (GCR) on May 26, in the purpose of manipulating the price of specific coins.
The team allegedly manipulated the launch of their coin on May 24 to control over 63% of CAT’s supply. More than $5 million worth of CAT memecoin was subsequently sold, with the proceeds split across multiple wallets.
A portion of the funds was then deposited into Hyperliquid for trading purposes. Minutes before the hack, scalpers opened long positions worth $2.3 million on ORDI (ORDI) and $1 million on Ether.fi (ETHFI). In trading, a long position is a bet that the price of an asset will increase in the future.
The attacker then used the compromised GCR account to post on ORDI, causing the token’s price to temporarily spike and earning approximately $34,000. A second article has been created targeting the ETHFI token. However, this time the market reaction was not as expected. After losing $3,500, the hacker closed the position.
“The scammers have low IQs, as evidenced by the terrible execution,” ZachXBT said of the outcome of the attack. ZachXBT continued:
“People let a scammer exploit them for 7 figs before buying an expensive username and posting mysterious messages. Stop giving callers a platform.
It is unclear whether the group is behind other similar attacks targeting cryptocurrency influencers in previous days.
A SIM swap attack resulted in the influencer’s account being compromised, according to an analysis by ZachXBT. This scheme involves a fraudster tricking a mobile carrier into porting the victim’s phone number to a new SIM card controlled by the fraudster.
Malicious actors have discovered that meme currencies are a formidable vector for attacks. Common strategies of fraudulent traders include promoting memecoin to inflate prices and then selling the tokens at the highest or suddenly draining all the money from the liquidity pool.
review: Pickup Artists Use Artificial Intelligence, Fake Nudes Ban, and Rabbit R1: AI Eye Failure
