On Could 27, the Solana-based memecoin “Sol” (CAT) suffered a crash after crypto investigator ZachXBT linked its staff to the latest hack of the X account of crypto investor Gigantic Cassocked-Rebirth, often known as GCR.
In an evaluation shared on X, ZachXBT alleged that the CAT staff “sniped their very own launch,” adopted by a pump-and-dump scheme through the hacked account of GCRClassic.
On this context, sniping includes insiders buying a considerable amount of a venture’s tokens earlier than they’re publicly accessible after which promoting them off as soon as buying and selling begins, usually at a a lot increased worth.
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In keeping with Lookonchain, an insider created new wallets and used 1,370 SOL (roughly $230,000) to purchase 632 million CAT tokens, representing 63.2% of the entire provide. The insider then dumped $5 million value of CAT and deposited components of the earnings to crypto exchanges KuCoin and MEXC.
ZachXBT constructed on these findings, including that to hide their actions, the insiders moved funds to the decentralized perpetual change Hyperliquid, the place they opened lengthy positions value $2.3 million in ORDI.
Concurrently, the hacked GCRClassic account posted promotional content material for ORDI, resulting in a worth surge. The insiders capitalized on this by securing earnings of $34,000 earlier than GCRClassic confirmed from one other account that his authentic X account had been hacked.
Regardless of this, the hackers continued their actions, posting about ETHFI and opening lengthy positions of $1 million value of ETHFI on Hyperliquid.
ZachXBT commented on the state of affairs, stating:
Individuals let a scammer farm them for 7 figs simply bc they bought an costly username and made mysterious posts.
Following these allegations, CAT’s worth crashed, dropping over 76% within the final 24 hours.
This story highlights not solely the rising development the place scammers are transitioning to memecoin scams but in addition the group’s vulnerability to fraud.
In different information, Gala Video games lately recovered roughly $22 million in Ether (ETH) from a hacker.
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