SOL Meme Coin Team Linked to GCRClassic Hack and Market Manipulation
The post SOL Meme Coin Team Linked to GCRClassic Hack and Market Manipulation appeared first on Coinpedia Fintech News
An investigation by crypto analyst ZachXBT in the last few days has found that the Sol ($CAT) meme coin team was involved in the hack of the GCRClassic account. It was established that the case implied insider trading, market manipulation and large-scale financial operations.
The hack unveiled
Prior to the hackers gaining access to the GCRClassic Twitter account, an address associated with the Sol team went ahead and established large bearish exposure to Hyperliquid, including $2.3 million in ORDI and $1 million in ETHFI.
The research linked the said transactions to the meme coin launch with the Sol team accused of manipulating the event and consequently seizing control of 63% of the $CAT supply. Its members were able to sell more than $5,000,000 worth of the token and the profits were split between the wallets.
Key transactions and market manipulation
The address 6M54xEUamVAQVWPzThWnCtGZ7qznomtbHTqSaMEsUHPF received around 15,000 SOL (which is equivalent to $2. 5 million) for the sale of $CAT. From then on, it started sending slightly similar amounts to Kucoin and MEXC, later creating similar withdrawals in Ethereum and Arbitrum.
Purchases in trading perpetual contracts were made to Hyperliquid in several transactions involving deposits of funds. As a result of the posts made from the compromised GCRClassic account in regards to ORDI, the price rocketed high enough to enable the associated address to exit the long position with a profit.
With the second try to manipulate the market with ETHFI, the hackers were able to attack only for a smaller amount, thus, evidencing their multiple attempts with the given scheme.
Lessons and Implications
This incident puts several critical lessons for the crypto community:
1. The hack illustrated how scammers use the names of large accounts to manipulate the market with the aim of making profits.
2. The research also revealed that meme coins are extremely vulnerable to fluctuations and generally even more than many venture capital coins.
3. It highlighted the fact that platforms should be careful in providing visibility to promoters of meme coins because the latter might have not so good intentions.
4. The community needs to be more cautious of SIM swaps and phishing scams due to the fact that these have been successful to the scammers in moving to meme coin marketing.
The situation described by ZachXBT offers a clear understanding of the case investigation and shows that, despite the relatively low level of hack actions, the results are quite significant. crypto users have been encouraged to learn these findings in order to prevent similar situations in future.
Also Check Out: Crypto Weekly Report: Exposing Hacks, Heists, & Takedowns
Filed under: Bitcoin - @ May 28, 2024 8:11 am