- Crypto detective ZachXBT says team behind Solana-based CAT meme coin is connected to the GCRClassic X account hack.
- Hackers opened long positions on ORDI and ETHFI before posting about them from GCRClassic's account.
- CAT is down over 70% in the past 24 hours.
Solana-based “sol” (CAT) meme coin crashed heavily on Monday following a recent analysis by crypto detective ZachXBT connecting its team to the X account hack of crypto analyst GCRClassic.
Read more: Coinbase files fresh reply in legal battle with SEC after ETH ETF and FIT21 approval
CAT's team accused of account hack
In an analysis on X on Monday, ZachXBT accused the CAT meme coin team of carrying out a sniping attack on their own project and using the proceeds to launch a pump-and-dump scheme via GCRClassic's account.
Sniping attack in this context refers to a fraudulent practice where insiders buy large holdings of a project before it’s available to the public only to dump the coin after it begins trading.
He started his analysis by citing a post from Lookonchain stating that an insider created new wallets to snipe 632 million CAT — 65% of its supply — using 1,370 SOL worth $230,000. The insider later dumped $5 million worth of CAT and transferred parts of the profits to crypto exchanges Kucoin and MEXC.
Also read: North Korean hackers leveraged Tornado Cash to launder $147.5 million in stolen crypto funds
After several strategies to hide their trail, the insiders transferred funds to decentralized perpetual exchange Hyperliquid and opened $2.3 million worth of ORDI long positions. Around the same time, compromised GCRClassic account released a post shilling for ORDI, causing the price to spike. The insiders quickly booked profits of $34,000 before GCRClassic made a post from another account confirming the original X account was hacked.
However, that didn't stop the hackers who made another post shilling ETHFI after opening long positions of $1 million worth of ETHFI on Hyperliquid.
"People let a scammer farm them for 7 figs just bc they purchased an expensive username and made mysterious posts," said ZachXBT.
Read more: PEPE hits new all-time high, meme coin could extend gains
He also alleged that most meme coins are often manipulated as phishing scammers have increasingly switched to becoming meme coin scammers.
After the accusations, CAT suffered a sharp decline, crashing nearly 70% in the past 24 hours.
CAT's team hasn't responded to a request to comment on ZachXBT's accusations.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
VanEck sees Bitcoin reaching $61 trillion market cap, Marathon buys $100 million BTC
Bitcoin declined by 1% on Thursday following asset manager VanEck's forecast that the top digital asset will reach a $61 trillion market capitalization by 2050.
Ethereum Classic price sets for a rally following retest of key support
ETC edges higher by 2.3% and trades around $22.60 at the time of writing on Friday after testing a key support area the day before. On-chain data showing increased account growth suggests a bullish move ahead. Ethereum Classic price faced rejection by the daily resistance level of $25.13 earlier this week.
Celebrity meme coins lose their shine
Celebrity meme coins report by Jupiter Slorg on Thursday shows that these tokens have been in deep waters since early July after experiencing heavy growth in June. In a recent analysis, Jupiter Slorg revealed that celebrity meme coins are down by an average of 94% from their all-time highs.
Ripple gains 5%, Mark Cuban says Kamala Harris’ nomination could affect SEC lawsuit
Ripple (XRP) made a comeback above key psychological resistance early on Wednesday. Crypto traders are optimistic after the Ethereum Exchange Traded Fund (ETF) launch. Entrepreneur and investor Mark Cuban recently shared his comments on how Kamala Harris’ nomination to the Presidential elections could influence crypto regulation.
Bitcoin: Will BTC manage to recover from recent market turmoil?
Bitcoin recovers to $67,000 on Friday after finding support around $63,500 a day before. Still, BTC losses over 1.50% on the week as Mt. Gox persists in transferring Bitcoin to exchanges.