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
WTI consolidates below $84.50, two-week top as bullish bias remains amid Hormuz standoffWest Texas Intermediate (WTI) – the benchmark US Crude Oil price – extends its consolidative price move through the first half of the European session and currently trades near the $84.25-$84.30 area, close to a two-week high set earlier this Tuesday.
Author  FXStreet
13 hours ago
West Texas Intermediate (WTI) – the benchmark US Crude Oil price – extends its consolidative price move through the first half of the European session and currently trades near the $84.25-$84.30 area, close to a two-week high set earlier this Tuesday.
placeholder
Australian Dollar gains as US Dollar struggles amid fading Fed rate hike betsAUD/USD extends its gains for the third successive day, trading around 0.7110 during the Asian hours on Tuesday. The currency pair continues to appreciate as the US Dollar (USD) remains subdued amid fading expectations for further rate hikes by the Federal Reserve (Fed).
Author  FXStreet
22 hours ago
AUD/USD extends its gains for the third successive day, trading around 0.7110 during the Asian hours on Tuesday. The currency pair continues to appreciate as the US Dollar (USD) remains subdued amid fading expectations for further rate hikes by the Federal Reserve (Fed).
placeholder
Gold Price Forecast: Gold May Break $4,500 as Fed Rate-Hike Expectations Continue to CoolAs of the European session on August 17, gold prices (XAUUSD) were trading above $4,400, up about 0.7% on the day and reaching an intraday high of $4,416.43, extending last Friday's gains
Author  TradingKey
Yesterday 10: 10
As of the European session on August 17, gold prices (XAUUSD) were trading above $4,400, up about 0.7% on the day and reaching an intraday high of $4,416.43, extending last Friday's gains
placeholder
Gold gains momentum to near $4,400 as Fed hike expectations drop despite Us-Iran tensionsGold price (XAU/USD) gains momentum to around $4,395 during the early Asian trading hours on Monday. The precious metal extends the rally as cooling US inflation data has dampened expectations for the US Federal Reserve (Fed) interest rate hike. 
Author  FXStreet
Yesterday 01: 18
Gold price (XAU/USD) gains momentum to around $4,395 during the early Asian trading hours on Monday. The precious metal extends the rally as cooling US inflation data has dampened expectations for the US Federal Reserve (Fed) interest rate hike. 
placeholder
Copper Price Forecast: Tight Supply Pushes Price Above $14,000, Can Copper Reach $15,000?As of the European session on August 14, international spot copper prices (COPPER) continued to fluctuate near historical highs, trading around $14,070, down slightly by 0.3% intraday. De
Author  TradingKey
Aug 14, Fri
As of the European session on August 14, international spot copper prices (COPPER) continued to fluctuate near historical highs, trading around $14,070, down slightly by 0.3% intraday. De
goTop
quote