Solana's Memecoin Creator Involved In Cheating Games In Crypto Market

The creator of the Solana memecoin was involved in a fraudulent game on the crypto market (Photo; Doc. Blocknews)

JAKARTA - The new scandal emerged when an investigation revealed a fraudulent game in the market. The team behind the CAT memecoin is suspected of being involved in a pump-and-dump' scheme that generates a profit of US$ 36,000.

CAT Connection

According to information from CCN, on May 26, the account of a crypto influencer and trader known as GCR was allegedly hacked by the CAT memecoin team. The account is used to manipulate the market. Crypto investigator, ZachXBT, explains that they did sniping' on their own project and use the results to run a pump-and-dump scheme through a GCR account that has about 465 thousand followers.

SNIping attacks here refer to a team that bought their own tokens before it was published, namely CAT, and then sold them completely after trading started. According to ZachXBT, Sol's team controlled 63% of CAT's total supply (632 million CAT) and sold them for more than $5 million before distributing its profits to multiple wallets. An on-chain analysis by Lookonchain concluded the same thing, relating the movement to an insider's action from Sol/CAT.

Prior to the hack, Sol's team opened up a long position at ORDI (US$2.3 million) and ETHFI (1 million US Dollars). Once everything was ready, hackers started posting about ORDI and ETHFI, causing some price action, which generated a profit of about US$34,000 and a loss of around US$3.5 thousand.

Bad Execution

In its closing, ZachXBT noted how stupid this situation is. These scammers are really low IQ as seen from poor executions, "he wrote, adding: People let scammers earn seven digits just because they buy expensive usernames and create mysterious posts. Your answer provides a platform for meme coin calling.

This hack was made possible through a SIM swap attack, in which the fraudster tricked the mobile service provider into transferring the victim's phone number to the new SIM card they controlled. From there, they can bypass two-factor authentication and security that may be installed to prevent this.