Markets
Crypto sleuth exposes SOL meme coin team in GCR hack
This bombshell news has left the cryptocurrency world reeling!
Blockchain Detective ZachXBT revealed a shocking link between the creators of a meme coin, Sol ($CAT), and the hacking of the account of a high-profile influencer, GCRClassic. But the plot thickens: the investigation has uncovered a web of deception, including insider trading, market manipulation and huge financial gains.
Read on to reveal the full story and see how this incident could impact your next crypto move.
Unraveling the conspiracy
Before 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.
Research linked these suspicious transactions to the launch of the meme coins, implicating the Sol team in orchestrating a wave of manipulation that took control of 63% of the $CAT supply. Profits in excess of $5,000,000 were quickly diverted and distributed among dark wallets.
Following the digital path
The address 6M54xEUamVAQVWPzThWnCtGZ7qznomtbHTqSaMEsUHPF received approximately 15,000 SOL (which is equivalent to $2.5 million) for the sale of $CAT. From that point on, he began sending slightly similar amounts to Kucoin and MEXC, subsequently creating similar withdrawals in Ethereum and Arbitrum.
Using perpetual contracts on Hyperliquid, hackers exploited compromised GCRClassic posts regarding ORDI. The resulting price increase facilitated a profitable exit from the long position. Despite a smaller-scale attempt with ETHFI, evidence suggests that several iterations of the scheme were in play.
Lessons learned the hard way
This incident offers several key lessons for the crypto community:
- Beware of imitators: The hack shows us how scammers exploit trusted accounts to manipulate markets for profit.
- Meme Coin Vulnerabilities: Meme coins, like $CAT, are particularly susceptible to volatility, even more so than traditional venture capital coins.
- Promotion supervision: Platforms must be careful in ensuring visibility of meme coin promoters, as intentions may not always be in line with the interests of the community.
- Fight against cyber threats: Greater awareness of SIM swaps and phishing scams is critical, given their role in fueling meme coin marketing schemes.
The revelations unearthed by the ZachXBT investigation paint a vivid picture of cryptocurrency-related wrongdoing. While the scale of the hack may seem modest, its implications are far-reaching. With this knowledge, the crypto community is better equipped to counter similar schemes in the future.
Also check: Cryptocurrency Weekly Report: Reporting Hacks, Heists, and Takedowns
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