Crypto sleuth ZachXBT has claimed that the team behind Solana-based meme coin CAT hacked crypto influencer GCR's account to manipulate token prices.
Unveiling the Attack: Exploit Details
An investigation led by on-chain sleuth ZachXBT has linked the recent hack of crypto influencer GCR's account to the team behind the newly launched Solana-based meme coin, CAT. The hack, which occurred on May 26, aimed to manipulate the prices of specific tokens.
According to ZachXBT, minutes before the hack, an address associated with CAT’s team opened long positions in ORDI and ETHFI using $2.3 million and $1 million, respectively. These funds were allegedly obtained through a manipulated token launch.
On May 24, the CAT team managed to control 63% of their token supply by sniping their own launch, subsequently selling these tokens for nearly $5 million. The profits were then dispersed across multiple wallets.
Sim-Swapping Scams Connected?
A SIM-swapping attack, which involves tricking a mobile carrier into transferring a victim’s phone number to a new SIM card controlled by the scammer, was identified as the method used to breach GCR’s account.
ZachXBT suggested a connection to previous SIM Swap scams by the same group, stating,
“The SOL team sniped their own launch to control 63% of the supply, selling $5M+ of CAT before transferring the profits to multiple wallets.”
Another on-chain analyst, Lookonchain, corroborated these findings, attributing the suspicious activity to an insider within the CAT team.
Trading Manipulation
Part of the stolen funds were deposited into Hyperliquid for trading. Just before the hack, the attackers opened long positions of $2.3 million on ORDI and $1 million on ETHFI, anticipating a rise in these assets' prices.
Using GCR’s compromised account, the hackers posted about ORDI, temporarily inflating its price and netting approximately $34,000. However, before further trades could be made, GCR alerted the community on X about the breach, advising that no information from his account should be trusted.
Despite this warning, the hackers later opened another long position on ETHFI on Hyperliquid but were not successful in making any profits. Instead, they lost around $3500 during their second attempt. In total, the hackers secured just over $30,000 in net profits from these trades.
Targeting Memecoins: Potential Risks
This incident highlights how memecoins can serve as lucrative targets for malicious actors. Common strategies include promoting a memecoin to inflate its price and then selling off tokens at the peak or draining funds from the liquidity pool.
ZachXBT cautioned that the danger might not be over, suggesting that positions on centralized exchanges could also be exploited, potentially increasing hackers' profits.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
