A recent investigation has established a connection between the creators of a newly launched memecoin and the recent hack of a cryptocurrency influencer’s account. The analysis, conducted by an anonymous investigator known as ZachXBT, revealed that the Sol team, responsible for the creation of the Solana-based memecoin CAT, compromised the account of crypto influencer Gigantic-Cassocked-Rebirth (GCR) on May 26. Their intention was to manipulate the prices of specific coins.
It was discovered that the Sol team manipulated the launch of their own coin on May 24, enabling them to gain control of more than 63% of the CAT supply. Subsequently, they sold over $5 million worth of the CAT memecoin and divided the profits among various wallets.
A portion of the funds obtained from the hack were then deposited into Hyperliquid for trading purposes. Just minutes before the hack took place, the attackers opened long positions of $2.3 million on ORDI (ORDI) and $1 million on Ether.fi (ETHFI). In trading, a long position is a speculation that the price of an asset will increase in the future.
Using GCR’s compromised account, the attacker posted about ORDI, causing a temporary surge in the token’s price and yielding approximately $34,000 in profit. Another post was made to target the ETHFI token, but this time, the market did not react as anticipated. After suffering a loss of $3,500, the hacker closed the position.
“Scammers are clearly not very intelligent, as evidenced by their poorly executed attack,” commented ZachXBT regarding the outcome of the incident. ZachXBT also expressed uncertainty about whether the group responsible for this attack has carried out similar attacks on other crypto influencers in recent days.
According to ZachXBT’s analysis, the breach on the influencer’s account was a result of a SIM swapping attack. This type of scheme involves scammers deceiving a mobile carrier into transferring a victim’s phone number to a new SIM card controlled by the scammer.
Memecoins have become a popular target for malicious actors seeking to exploit vulnerabilities. Common strategies employed by scammers include promoting a memecoin to artificially inflate its price and then selling off tokens at the peak, or suddenly draining all funds from the liquidity pool.
In other news, the latest issue of the magazine “Pickup artists using AI, deep fake nudes outlawed, Rabbit R1 fail: AI Eye” covers a variety of topics, including the advancements of AI in the field of dating, the banning of deep fake nudes, and the shortcomings of the Rabbit R1 technology.