GCR Hack Exposes CAT Coin Team

According to the on-chain sleuth, CAT memecoin creators hacked crypto influencer GCR’s account to manipulate some coin prices.

An inquiry has established a connection between the group responsible for a recently introduced memecoin and the recent compromise of a cryptocurrency influencer’s account.

The Sol team, the creators of the Solana-based memecoin CAT, compromised the X account of crypto influencer Gigantic-Cassocked-Rebirth (GCR) on May 26 to manipulate the prices of specific coins, according to an investigation conducted by detective ZachXBT under the alias ZachXBT.

On May 24, the group allegedly manipulated the launch of their coin to acquire authority over 63% of the CAT supply. The proceeds from the sale of CAT memecoins, which exceeded $5 million, were distributed to numerous wallets.

Later, a portion of the funds were deposited for trading purposes into Hyperliquid. The exploiters opened long positions worth $2.3 million on ORDI (ORDI) and $1 million on Ether.fi (ETHFI) minutes before the breach. A long position in trading is a wager that the price of an asset will increase in the future.

The assailant then posted about ORDI on the compromised GCR account, causing a temporary spike in the token price and earning the attacker around $34,000.

A second message was composed with the ETHFI token in mind. Nevertheless, the market’s reaction this time was unexpected. The position was terminated by the hacker following a $3,500 loss.

“Scammers have a low IQ, as demonstrated by the appalling execution,” ZachXBT said of the attack’s result. ZachXBT proceeded:

“People let a scammer farm them for 7 figs just bc they purchased an expensive username and made mysterious posts. Stop giving meme coin callers a platform.”

It is unknown whether the group was responsible for other assaults of a similar nature that targeted crypto influencers in recent days. 

ZachXBT’s analysis indicates that a SIM swapping attack caused an intrusion into the influencer’s account. As part of this scheme, the perpetrator dupes a mobile carrier into transferring the victim’s phone number to a new SIM card under the fraudulent’s control.

Malicious actors have identified memecoins as an abundant vector for launching attacks. Prominent tactics employed to mislead traders encompass the promotion of a memecoin to inflate prices, followed by the abrupt depletion of all funds from the liquidity pool.