This bombshell news has left the crypto world reeling!
Blockchain sleuth ZachXBT has exposed a shocking link between the creators of a meme coin, Sol ($CAT), and the hack of a high-profile influencer’s account, GCRClassic. But the plot thickens – the investigation unearthed a web of deceit, including insider trading, market manipulation, and hefty financial gains.
Read on to unravel the full story and see how this incident could impact your next crypto move.
Unraveling the Conspiracy
Before the hackers breached the GCRClassic Twitter account, an address linked to the Sol team initiated significant bearish positions on Hyperliquid, with a staggering $2.3 million in ORDI and $1 million in ETHFI.
The research linked these suspicious transactions to the meme coin launch, implicating the Sol team in orchestrating a manipulation spree that seized control of 63% of the $CAT supply. Profits exceeding $5,000,000 were swiftly siphoned off and distributed among shadowy wallets.
Following the Digital Trail
The address 6M54xEUamVAQVWPzThWnCtGZ7qznomtbHTqSaMEsUHPF received around 15,000 SOL (which is equivalent to $2. 5 million) for the sale of $CAT. From then on, it started sending slightly similar amounts to Kucoin and MEXC, later creating similar withdrawals in Ethereum and Arbitrum.
Utilizing perpetual contracts on Hyperliquid, the hackers capitalized on compromised GCRClassic posts regarding ORDI. The resulting price surge facilitated a profitable exit from the long position. Despite a smaller-scale attempt with ETHFI, evidence suggests multiple iterations of the scheme were in play.
Lessons Learned the Hard Way
This incident puts several critical lessons for the crypto community:
- Beware the Impersonators: The hack shows us how scammers exploit reputable accounts to manipulate markets for profit.
- Meme Coin Vulnerability: Meme coins, like $CAT, are particularly susceptible to volatility, even more so than traditional venture capital coins.
- Vigilance in Promotion: Platforms must exercise caution when granting visibility to meme coin promoters, as intentions may not always align with community interests.
- Combatting Cyber Threats: Heightened awareness of SIM swaps and phishing scams is imperative, given their role in fueling meme coin marketing schemes.
The revelations brought to light by ZachXBT’s investigation paint a vivid picture of crypto malfeasance. While the scale of the hack may seem modest, its implications are far-reaching. Armed with this knowledge, the crypto community stands better equipped to thwart similar schemes in the future.
Also Check Out: Crypto Weekly Report: Exposing Hacks, Heists, & Takedowns
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