As an experienced analyst, I find the allegations made by ZachXBT against the CAT team highly concerning. The evidence presented, including the suspicious activity surrounding their token launch and the manipulation of GCR’s account to influence token prices, is troubling. The use of SIM-swapping scams to gain unauthorized access to crypto influencers’ accounts is not a new tactic, but it underscores the need for heightened security measures in the cryptocurrency space.
ZachXBT, a well-known figure in the cryptocurrency community, has made an accusation regarding the creators of the Solana-based meme token CAT. He alleges that they orchestrated the hacking of crypto influencer GCR’s account for the purpose of manipulating the prices of CAT tokens.
Unveiling the Attack: Exploit Details
A probe spearheaded by cryptocurrency detective ZachXBT has implicated the creators of the recently launched Solana-project meme token, CAT, in the recent hacking of crypto influencer GCR’s account. The incident, which took place on May 26, was intended to manipulate the markets and influence the prices of certain tokens.
Just prior to the reported hack, an account linked to CAT’s group bought substantial amounts of ORDI and ETHFI tokens using $2.3 million and $1 million respectively, as mentioned by ZachXBT. The money is believed to have been acquired through a questionable token launch event.
As a successful crypto investor, I was thrilled when the CAT team effectively seized 63% of their token supply during their own launch on May 24th. Following this strategic move, they sold these tokens for an impressive nearly $5 million profit. The gains were then wisely distributed among various wallets to secure and expand my crypto portfolio.
Sim-Swapping Scams Connected?
A mobile carrier was deceived into transferring GCR’s phone number to a new SIM card belonging to a scammer, allowing unauthorized access to their account through a SIM-swapping attack.
ZachXBT suggested a connection to previous SIM Swap scams by the same group, stating,
As an analyst, I would rephrase that statement as follows: “I identified that the SOL team proactively seized control of over 63% of the CAT supply by selling it for more than $5 million. Subsequently, they distributed the earnings into various wallets.”
An analyst from the blockchain, named Lookonchain, supports this conclusion by pointing the finger at an insider in the CAT team for the questionable transactions.
Trading Manipulation
Some of the stolen money was transferred into Hyperliquid to be used for trading prior to the cyberattack. The hackers initiated long positions worth $2.3 million on ORDI and $1 million on ETHFI just moments before the breach, intending to profit from an expected price increase in these assets.
As a security analyst, I uncovered an instance where hackers exploited my compromised account with GCR to manipulate the market price of ORDI. By posting false information, they successfully inflated its value, resulting in approximately $34,000 in ill-gotten gains. However, before making any additional trades, I swiftly alerted the community on X about the security breach and advised them to exercise caution with any information originating from my account.
Despite the prior caution, the hackers proceeded to establish another long position on ETHFI through Hyperliquid, yet failed to generate any gains. On the contrary, they suffered a loss of approximately $3500 during their second endeavor. In the end, these transactions yielded them a net profit of over $30,000.
Targeting Memecoins: Potential Risks
This occurrence underscores the potential of memecoins being attractive targets for malevolent individuals. They often employ tactics such as pumping up the value of a memecoin to manipulate its price and subsequently selling off their tokens at the height, or emptying out the liquidity pool.
ZachXBT issued a warning, reminding that the risk may persist, implying that attacks on centralized exchanges could represent further opportunities for hackers to amass greater gains.
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2024-05-28 15:10