Why investors need to be careful about celebrity meme coins after SWEENEY token scam

In a now-viral analysis on July 30, on-chain investigator ZachXBT drew attention to a recent celebrity meme coin scam involving the recent hacking of actress Sydney Sweeney's X account and the launch of the SWEENEY token.

Hackers responsible for SWEENEY token launch

The actress's X account was compromised on July 2, 2024, with the attacker promoting a Solana-based token, SWEENEY, as part of a pump-and-dump scheme. ZachXBT's investigation suggests that convicted hacker Gurvinder Bhangu, also known as "Gurv," was behind the hack and the subsequent launch of the SWEENEY token.

Bhangu, who has a history of hacking Instagram accounts and blackmailing users, previously served time in the United Kingdom for his crimes.

The alleged hackers reportedly accessed Sydney Sweeney's phone and X's account. 404 Media posted evidence, including a photo of an iPhone and a July 2 Verizon receipt, indicating changes to her account.

The report suggests that Sweeney was SIM swapped, allowing the hacker to use her phone number on another device. The breach coincided with posts on Sweeney's X account promoting the SWEENEY token and teasing, "Going live on spaces soon, stay tuned to see what $weeney can do." These tweets and others mentioning a meme coin have since been deleted. Sweeney has not commented on the incident.

According to online reports, Gurv also previously hacked three victims in the United States and locked them out of their social media accounts, including an account that has 1.1 million followers.

"After the incident, screenshots of Gurv receiving codes to log in to Sydney Sweeney's account from the SIM swap on Telegram appeared online," ZachXBT wrote.

Gurv also allegedly hacked Breaking Bad's Bob Odenkirk

Using the Ethereum address connected to the Sydney Sweeney SIM swap on July 9, ZachXBT found another attack perpetrated by Gurv or an accomplice.

On July 8, Breaking Bad and Better Call Saul actor Bob Odenkirk also suffered a hack on X, with a hacker posting a link to a memecoin, just like in the Sweeney hack.

According to ZachXBT's analysis, the proceeds from the scam were sent to the same Ethereum address that funded the Solana address.

This shows that most celebrity meme coins launched in the past months may have been rug pulls from compromised celebrity social media profiles.

Meanwhile, a report by Jupiter Slorg revealed that most celebrity meme coins launched in the past month have declined by almost 90% from their all-time highs, and many are deemed to be potential pump-and-dump schemes.

Hence, investors must exercise caution and understand the risks before trading these celebrity meme tokens.