A new investigation led by the pseudonymous blockchain investigator ZachXBT uncovered that the team behind CAT, a Solana-based meme coin, hacked the Twitter account of crypto influencer Gigantic-Cassocked-Rebirth (GCR) on May 26. Their goal was to influence the prices of certain cryptocurrencies through deceptive means.
Meme Coin Team Hacks Crypto Influencer GCR
According to Cryptonews, popular crypto influencer Gigantic-Cassocked-Rebirth (GCR) was hacked on his X (formerly Twitter) account on late Sunday. The hacker used GCR’s account to promote ORDI and Luna 2.0 tokens, resulting in brief price hikes. GCR later confirmed the breach, urging his followers to disregard any promotional content from his channels.
However, ZachXBT’s investigation revealed that the team behind the CAT meme coin orchestrated the hack. ZachXBT noted that the scheme started with their coin launch on May 24, in which the team gained control of more than 63% of the CAT supply. Subsequently, they sold over $5 million worth of CAT, distributing the profits across multiple wallets. Further analysis showed that some funds were funneled into Hyperliquid for trading. Notably, before the hack, the perpetrators opened long positions worth $2.3 million on ORDI (ORDI) and $1 million on Ether.fi (ETHFI).
Following the hack, the price of ORDI briefly climbed from around $40 to $44 before falling back to $40, with the scammer securing a profit of approximately $34,000. Additionally, Luna 2.0 experienced a momentary 274% increase. A subsequent post was shared to boost ETHFI, but the market did not respond as expected, resulting in a $3,500 loss for the attackers, who closed the position. It’s unclear whether this group is behind other similar attacks on crypto influencers in recent days.
Celebs’ X Accounts in SIM Swapping and Bribery Hacks
According to ZachXBT’s findings, the breach was facilitated by a SIM-swapping attack. The method involves scammers deceiving a mobile carrier into transferring the victim’s phone number to a SIM card controlled by the attacker. GCR believes that someone at X.com might have been bribed to provide access to his account, leading to the security breach. GCR later confirmed the hack, asking followers to ignore any promotional posts.
Similarly, late Sunday, Caitlyn Jenner, the reality TV star and Olympic athlete, announced the launch of her cryptocurrency token, JENNER, via a post on her X account. The token was created using Solana’s meme coin platform, pump.fun. By Monday morning, JENNER had achieved a market capitalization of $37 million. In response to hacking concerns, Jenner and her manager, Sophia Hutchins, posted videos on her X account to confirm the meme coin’s legitimacy. Despite these assurances, some users are still skeptical, suggesting the videos could be deepfakes.
Similarly, Rapper Rich The Kid promoted a meme coin, RICH, via a pump.fun link in now-deleted X posts. On Monday morning, Rich The Kid released a video claiming his X account had been hacked, resulting in the unauthorized promotion of the RICH token.
Impact on Market and Asset Prices
Market Implications
- Increased Skepticism: The hacking of crypto influencer GCR’s account and the subsequent promotion of various tokens through deceptive means could foster increased skepticism within the crypto community. Traders and investors may become more cautious about following recommendations from influencers, potentially leading to reduced trust in promotional content.
- Regulatory Scrutiny: The involvement of meme coin teams in hacking influencer accounts might attract regulatory attention, particularly regarding market manipulation and cybersecurity. Regulatory bodies may intensify efforts to monitor and regulate crypto activities, potentially implementing stricter measures to prevent similar incidents in the future.
Asset Price Implications
- Token Volatility: The brief price hikes observed in tokens like ORDI and Luna 2.0 following the hack of GCR’s account highlight the susceptibility of token prices to manipulation. Investors may experience increased volatility in token prices as a result of market manipulation attempts, potentially leading to short-term price fluctuations.
- Reputation Impact: Tokens promoted through deceptive means, such as the RICH token promoted by Rapper Rich The Kid, could experience reputational damage. Investors may hesitate to engage with tokens associated with fraudulent promotional activities, potentially leading to diminished demand and lower prices for affected tokens.
Conclusion
The recent hacking incident involving crypto influencer GCR’s Twitter account underscores the susceptibility of the crypto market to manipulation. This event may lead to heightened skepticism among traders and investors, potentially eroding trust in influencer endorsements. Moreover, the involvement of meme coin teams in such activities could attract regulatory scrutiny, possibly resulting in stricter oversight measures. As token prices experience increased volatility and tokens associated with fraudulent promotions face reputational damage, the incident prompts a reevaluation of risk management strategies within the crypto community.
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