CAT enters free fall after crypto sleuth alleges founders behind GCRClassic hack
- 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.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addition to
