Insight into Recent Crypto Scam Revealed 🕵️♂️
An investigation conducted by crypto analyst ZachXBT has uncovered a scam involving the Sol ($CAT) meme coin team in a hack on the GCRClassic account. This scandal involved insider trading, market manipulation, and significant financial operations.
The Unveiling of the Hack 🕵️♂️
- Prior to the breach of the GCRClassic Twitter account by hackers, an address linked to the Sol team initiated substantial bearish exposure to Hyperliquid, involving $2.3 million in ORDI and $1 million in ETHFI.
- The research tied these transactions to the launch of the meme coin, accusing the Sol team of manipulating the event to gain control of 63% of the $CAT supply. They were able to sell over $5,000,000 worth of the token, with profits distributed among various wallets.
Crucial Transactions and Market Manipulation 🕵️♂️
- An address received approximately 15,000 SOL (equivalent to $2.5 million) for the sale of $CAT. Subsequently, it made similar transfers to Kucoin and MEXC, followed by withdrawals in Ethereum and Arbitrum.
- Trading perpetual contracts were executed on Hyperliquid through multiple transactions involving fund deposits. Manipulative posts from the compromised GCRClassic account caused a surge in the price of ORDI, enabling the associated address to exit the long position profitably.
- Despite an attempt to manipulate the market with ETHFI, the hackers only managed to impact a smaller amount, indicating repeated efforts under this scheme.
Learnings and Consequences 🕵️♂️
- This incident underscores several key takeaways for the crypto space:
- Scammers exploit prominent accounts to manipulate markets and generate profits.
- Meme coins are highly susceptible to price fluctuations, more so than traditional venture capital coins.
- Platforms must exercise caution when promoting meme coins, as intentions may not always be ethical.
- Users should remain vigilant against SIM swaps and phishing scams, as scammers increasingly target meme coin communities.
The findings by ZachXBT shed light on the investigation, emphasizing the need for crypto enthusiasts to stay informed and guard against similar fraudulent activities in the future.
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