ZachXBT Uncovers New $5M Crypto Scam by Solana Memecoin Team
A high-profile hack has once again shaken the world of cryptocurrencies, this time targeting the account of a well-known crypto influencer. On May 26, the Gigantic-Cassocked-Rebirth (GCR) account was compromised, leading to significant financial manipulations. The investigation, led by on-chain sleuth ZachXBT, has revealed a sophisticated plot by the team behind the Solana-based memecoin CAT.
The investigation traced the hack back to the creators of the CAT memecoin, who had previously launched their token on May 24. By controlling over 63% of the CAT supply, the team sold over $5 million worth of the token, distributing the profits across multiple wallets. Part of these funds were then used to open long positions in other tokens such as ORDI and Etherfi (ETHFI).
Strategic Long Positions
Minutes before the hack, the exploiters placed long positions worth $2.3 million on ORDI and $1 million on ETHFI. Using GCR’s compromised account to post about ORDI, they temporarily spiked the token’s price, netting approximately $34,000. However, their attempt to manipulate the ETHFI token did not yield the same success, resulting in a loss of $3,500.
Scammers’ Poor Execution
In his analysis, ZachXBT criticised the attackers for their poor execution. “Scammers are low IQ, as evident by the awful execution,” he remarked. He also warned the community against giving platforms to memecoin promoters, saying, “People let a scammer farm them for 7 figs just because they purchased an expensive username and made mysterious posts.”
SIM Swapping Scheme Uncovered
The breach of GCR’s account was achieved through a SIM-swapping attack. This technique involves scammers tricking mobile carriers into transferring a victim’s phone number to a new SIM card controlled by the scammer. This type of attack has become increasingly common in the crypto world, with memecoins providing fertile ground for such scams.
Funds Distribution and Exchange Movements
4/ Using a timing analysis I found withdrawals from the two exchanges on Ethereum & Arbitrum shortly after the Solana deposits in similar amounts.
Further analysis by ZachXBT revealed that the CAT team transferred large sums to various crypto exchanges. A notable address, 6M54xEUamVAQVWPzThWnCtGZ7qznomtbHTqSaMEsUHPF, received approximately 15,000 SOL (around $2.5 million) from CAT sales and deposited significant amounts into exchanges like KuCoin and MEXC. These movements were meticulously tracked, linking withdrawals on Ethereum and Arbitrum to the Solana deposits.
Conclusion: A Call for Vigilance
These incidents underscore the persistent risks in the cryptocurrency market, highlighting the need for enhanced security and transparency. As ZachXBT concluded, “Meme coins are just as manipulated if not more than VC coins.” The community is urged to stay vigilant and sceptical of suspicious activities, ensuring a safer trading environment for all.
