CAT enters free fall after crypto sleuth alleges founders behind GCRClassic hack

Source Fxstreet
  • Crypto detective ZachXBT says team behind Solana-based CAT meme coin is connected to the GCRClassic X account hack.
  • Hackers opened long positions on ORDI and ETHFI before posting about them from GCRClassic's account.
  • CAT is down over 70% in the past 24 hours.

Solana-based “sol” (CAT) meme coin crashed heavily on Monday following a recent analysis by crypto detective ZachXBT connecting its team to the X account hack of crypto analyst GCRClassic.

Read more: Coinbase files fresh reply in legal battle with SEC after ETH ETF and FIT21 approval

CAT's team accused of account hack

In an analysis on X on Monday, ZachXBT accused the CAT meme coin team of carrying out a sniping attack on their own project and using the proceeds to launch a pump-and-dump scheme via GCRClassic's account.

Sniping attack in this context refers to a fraudulent practice where insiders buy large holdings of a project before it’s available to the public only to dump the coin after it begins trading.

He started his analysis by citing a post from Lookonchain stating that an insider created new wallets to snipe 632 million CAT — 65% of its supply — using 1,370 SOL worth $230,000. The insider later dumped $5 million worth of CAT and transferred parts of the profits to crypto exchanges Kucoin and MEXC.

Also read: North Korean hackers leveraged Tornado Cash to launder $147.5 million in stolen crypto funds

After several strategies to hide their trail, the insiders transferred funds to decentralized perpetual exchange Hyperliquid and opened $2.3 million worth of ORDI long positions. Around the same time, compromised GCRClassic account released a post shilling for ORDI, causing the price to spike. The insiders quickly booked profits of $34,000 before GCRClassic made a post from another account confirming the original X account was hacked.

However, that didn't stop the hackers who made another post shilling ETHFI after opening long positions of $1 million worth of ETHFI on Hyperliquid.

"People let a scammer farm them for 7 figs just bc they purchased an expensive username and made mysterious posts," said ZachXBT.

Read more: PEPE hits new all-time high, meme coin could extend gains

He also alleged that most meme coins are often manipulated as phishing scammers have increasingly switched to becoming meme coin scammers.

After the accusations, CAT suffered a sharp decline, crashing nearly 70% in the past 24 hours.

CAT's team hasn't responded to a request to comment on ZachXBT's accusations.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Geopolitical Premium Strikes Back. Hormuz Strait Reopening Faces Changes, Bitcoin Barely Holds 70,000 Psychological LevelMiddle East tensions escalate ahead of negotiations, causing Bitcoin to pull back after a surge, with $70,000 becoming the watershed between bulls and bears.On April 9, unexpected develop
Author  TradingKey
14 hours ago
Middle East tensions escalate ahead of negotiations, causing Bitcoin to pull back after a surge, with $70,000 becoming the watershed between bulls and bears.On April 9, unexpected develop
placeholder
Strait of Hormuz Closes Again, When Will Global Energy Supply See Light Again?The outlook for navigation through the Strait of Hormuz remains clouded by uncertainty, as the newly reached ceasefire agreement has failed to bring stability to this global energy choke
Author  TradingKey
14 hours ago
The outlook for navigation through the Strait of Hormuz remains clouded by uncertainty, as the newly reached ceasefire agreement has failed to bring stability to this global energy choke
placeholder
Gold edges lower below $4,750 amid fragile Middle East ceasefire Gold price (XAU/USD) trades in negative territory around $4,705 during the early Asian session on Thursday. The precious metal edges lower amid a temporary two-week ceasefire between the US and Iran.   
Author  FXStreet
14 hours ago
Gold price (XAU/USD) trades in negative territory around $4,705 during the early Asian session on Thursday. The precious metal edges lower amid a temporary two-week ceasefire between the US and Iran.   
placeholder
Gold remains depressed as skepticism over US-Iran truce supports USDGold (XAU/USD) once again shows some resilience below the $4,700 mark during the Asian session on Thursday, and for now, seems to have stalled the previous day's retracement slide from a three-week high.
Author  FXStreet
17 hours ago
Gold (XAU/USD) once again shows some resilience below the $4,700 mark during the Asian session on Thursday, and for now, seems to have stalled the previous day's retracement slide from a three-week high.
placeholder
U.S.-Iran Ceasefire. Bitcoin Surges Past $72,000, 80,000 Within Reach?The U.S.-Iran ceasefire agreement triggered a surge in Bitcoin of over 4%, with the Islamabad negotiations starting this Friday serving as a key driver for further gains.On April 8, a bri
Author  TradingKey
Yesterday 10: 12
The U.S.-Iran ceasefire agreement triggered a surge in Bitcoin of over 4%, with the Islamabad negotiations starting this Friday serving as a key driver for further gains.On April 8, a bri
goTop
quote