ZachXBT Investigation Connects Memecoin Team to Breach of Crypto Influencer’s Account
A recent inquiry spearheaded by ZachXBT on May 27 has linked the developers of a new memecoin to the hacking of a crypto influencer’s account, unveiling a sophisticated plot to manipulate cryptocurrency prices.
The investigation, carried out by the pseudonymous blockchain investigator ZachXBT, revealed that the group behind CAT, a memecoin based on Solana, infiltrated the Twitter account of crypto influencer Gigantic-Cassocked-Rebirth (GCR) on May 26. Their aim was to impact the prices of specific cryptocurrencies through deceitful methods.
Crypto Influencer GCR’s Account Compromised by Memecoin Team as per Investigation
Late on Sunday, the well-known crypto influencer Gigantic-Cassocked-Rebirth (GCR) fell victim to a hack on his X (formerly Twitter) account. The hacker utilized GCR’s account to endorse ORDI and Luna 2.0 tokens, leading to temporary price surges. GCR later confirmed the breach, advising his followers to disregard any promotional content from his channels.
ZachXBT’s probe revealed that the team behind CAT memecoin orchestrated the hack. ZachXBT pointed out that the scheme commenced with their coin launch on May 24, during which the team seized control of over 63% of the CAT supply. Subsequently, they sold more than $5 million worth of CAT, dispersing the profits among various wallets. Further analysis indicated that some funds were channeled into Hyperliquid for trading.
Remarkably, prior to the hack, the offenders initiated long positions totaling $2.3 million on ORDI (ORDI) and $1 million on Ether.fi (ETHFI).
Following the breach, the price of ORDI briefly surged from approximately $40 to $44 before dropping back to $40, with the scammer pocketing a profit of around $34,000. Additionally, Luna 2.0 witnessed a momentary 274% surge. A subsequent post was circulated to boost ETHFI, but the market response was not as anticipated, resulting in a $3,500 loss for the attackers, who subsequently closed the position.
“Scammers are dim-witted, as evidenced by the poor execution,” ZachXBT remarked on the incident. “People allowed a scammer to exploit them for seven figures just because they acquired a pricey username and made enigmatic posts. Stop giving meme coin promoters a platform.”
It remains unclear if this group is responsible for other similar attacks on crypto influencers in recent times.
Celebrities’ X Accounts Targeted in SIM Swapping and Bribery Breaches
According to ZachXBT’s discoveries, the breach was facilitated by a SIM-swapping attack. This method involves scammers tricking a mobile carrier into transferring the victim’s phone number to a SIM card controlled by the attacker.
GCR suspects that an individual at X.com may have been bribed to grant access to his account, leading to the security breach.
“I was informed two months ago by someone affiliated with Twitter that bribes had been made to access my account and beefed up security then,” GCR stated. “But there is no security if X employees accept money for admin access.”
GCR later confirmed the hack, urging followers to disregard any promotional posts.
Similarly, late on Sunday, Caitlyn Jenner, the reality TV star and Olympic athlete, announced the launch of her cryptocurrency token, JENNER, through a post on her X account. The token was created using Solana’s memecoin platform, pump.fun. By Monday morning, JENNER had attained a market capitalization of $37 million.
In response to concerns about hacking, Jenner and her manager, Sophia Hutchins, uploaded videos on her X account to validate the memecoin’s legitimacy. Despite these assurances, some users remain doubtful, suggesting the videos could be deepfakes.
Likewise, Rapper Rich The Kid promoted a memecoin, RICH, via a pump.fun link in now-deleted X posts. On Monday morning, Rich The Kid released a video alleging that his X account had been hacked, resulting in the unauthorized promotion of the RICH token.
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