Newly Launched Memecoin Team Linked to Crypto Influencer Account Hack
Summary:
A recent investigation has linked the team behind the newly released Solana-based memecoin called CAT to a hacking incident involving a crypto influencer's account. The team is accused of manipulating their coin launch to control over 63% of the CAT supply, selling over $5 million worth of the coin, and using the profits for trading. The influencer’s account was hacked using a SIM swapping scheme. The attack is indicative of a growing trend of fraudulent activities involving memecoins.
Recent findings connect a newly inaugurated 'memecoin' team with the hacking incident involving a cryptocurrency influencer's account. The evidence from an investigation, led by anonymous investigator ZachXBT, traced back the actions to the Sol team, creators of the Solana-based CAT memecoin. On May 26 they reportedly breached Gigantic-Cassocked-Rebirth (GCR), a popular crypto influencer's X account, with intentions of swaying the prices of specific coins. The team is also accused of manipulating the launch of their memecoin on May 24 to secure over 63% of the CAT supply. Consequently, they sold CAT memecoins worth more than $5 million and dispersed the gains amongst various wallets, according to ZachXBT. A fraction of these earnings was later transferred into Hyperliquid for trading purposes. Notably, the infiltrators had initiated long positions amounting to $2.3 million on ORDI and $1 million on Ether.fi just before the hacking incident. In finance, this tactic anticipates an increase in the price of the asset. Using GCR's compromised account, the hacker made a post about ORDI which resulted in a temporary surge in its price contributing to gains of around $34,000. They attempted a similar ploy with the ETHFI token but the market didn't respond as anticipated. After incurring a loss of $3,500, the hacker terminated the position. ZachXBT commented on the poor execution of the scam, condemning those who empowered the scam by falling for an extravagant username and cryptic posts. It remains uncertain if this group orchestrated other similar crypto attacks in recent days. As per ZachXBT's study, the breach of the influencer’s account was caused by a SIM swapping scam wherein the perpetrator manipulates a mobile carrier to assign the victim’s phone number to a new SIM card under their control. Such scams have grown in popularity among memecoins as they provide fertile ground for carrying out quick and high value fraudulent transactions. These schemes typically involve hyping a memecoin to drive up its price before cashing out or suddenly depleting all funds from the liquidity pool.
Published At
5/27/2024 7:15:00 PM
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