A recent investigation by ZachXBT on May 27 has revealed that the creators of a new memecoin were involved in hacking a crypto influencer’s account as part of a complex scheme to manipulate cryptocurrency prices. The investigation, conducted by ZachXBT, found that the team behind CAT, a Solana-based memecoin, hacked the Twitter account of crypto influencer Gigantic-Cassocked-Rebirth on May 26. The goal was to influence the prices of certain cryptocurrencies through deceptive means.
The hacker used GCR’s account to promote ORDI and Luna 2.0 tokens, resulting in brief price hikes. GCR later confirmed the breach and urged followers to disregard any promotional content from his channels. ZachXBT’s investigation revealed that the team behind CAT memecoin orchestrated the hack. The scheme started with their coin launch on May 24, where the team gained control of more than 63% of the CAT supply and sold over $5 million worth of CAT, distributing the profits across multiple wallets. Some funds were then funneled into Hyperliquid for trading.
Before the hack, the perpetrators opened long positions worth $2.3 million on ORDI and $1 million on Ether.fi. Following the hack, the price of ORDI briefly climbed before falling back down, with the scammer securing a profit of approximately $34,000. Additionally, Luna 2.0 experienced a momentary 274% increase. A subsequent post was shared to boost ETHFI, but the market did not respond as expected, resulting in a $3,500 loss for the attackers. ZachXBT commented on the incident, criticizing the scammers’ execution and urging people to stop giving meme coin callers a platform.
The breach was facilitated by a SIM-swapping attack, according to ZachXBT’s findings. This method involves scammers deceiving a mobile carrier into transferring the victim’s phone number to a SIM card controlled by the attacker. GCR believes someone at X.com might have been bribed to provide access to his account, leading to the security breach. Celebrities’ X accounts have been targeted in similar attacks recently.
Late Sunday, Caitlyn Jenner announced the launch of her cryptocurrency token, JENNER, via a post on her X account. The token was created using Solana’s memecoin platform, pump.fun, and quickly achieved a market capitalization of $37 million by Monday morning. Jenner and her manager posted videos on her X account to confirm the memecoin’s legitimacy in response to hacking concerns. Similarly, Rapper Rich The Kid promoted a memecoin, RICH, via a now-deleted X post and claimed his account had been hacked, resulting in the unauthorized promotion of the token.
In conclusion, the investigation led by ZachXBT has uncovered a complex scheme involving the hacking of a crypto influencer’s account by the creators of a new memecoin to manipulate cryptocurrency prices. The perpetrators orchestrated the hack to influence the prices of certain cryptocurrencies, resulting in brief price hikes and profits for the scammers. The breach was facilitated by a SIM-swapping attack, highlighting the vulnerabilities in cybersecurity for celebrities and influencers in the crypto community. Efforts have been made to confirm the legitimacy of memecoins promoted by celebrities, but skepticism remains among some users. It is crucial for investors and followers to exercise caution and due diligence when engaging with cryptocurrency promotions and influencer endorsements.