CAT Coin Plunges After Founders Involved in Hacking
Based in Solana, May 27 memecoin “Sol” (CAT) suffered a crash. After cryptocurrency investigator ZachXBT linked the team to the recent hacking of the X account of cryptocurrency investor Gigantic Cassocked-Rebirth, known as GCR.
In a shared analysis of X, ZachXBT argued: The CAT team “sniped its own fire” and then developed a pump-and-dump plan. Via a hacked GCRClassic account.
In this context, sniping involves insiders. Buy project tokens in bulk before they are released and then sell them once trading begins. They usually sell for a much higher price.
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According to Lookonchain, the insider created a new wallet and used 1,370 SOL (about $230,000) to create it. Purchase of 632 million CAT tokens, It accounts for 63.2% of the total supply. Then the insider $5 million worth of CAT was thrown away. A portion of the profits was deposited into cryptocurrency exchanges KuCoin and MEXC.
Based on these findings, ZachXBT added the following to Insider in order to hide his activities: I moved my funds to Hyperliquid, a decentralized perpetual exchange. Opened a long position worth $2.3 million on ORDI.
at the same time, Posting ORDI promotional content using a hacked GCRClassic account Leading to a surge in prices. Insiders use this to GCRClassic secured a profit of $34,000 before another account confirmed that the original X account had been hacked.
Nevertheless, hackers’ activities continued, I posted about ETHFI and opened a $1 million long ETHFI position on Hyperliquid.
ZachXBT commented on the situation:
People bought expensive usernames and made mysterious posts, giving scammers seven figs to create farms.
Following these claims, The value of CAT has fallen, It is down more than 76% in the last 24 hours.
This story highlights the community’s vulnerability to scams, as well as the trend of scammers turning to memecoin scams.
In other news, Gala Games recently recovered approximately $22 million worth of ETH from hackers.
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