An investigation conducted by crypto sleuth ZachXBT has uncovered a connection between the team behind a newly launched memecoin and a recent hack of a crypto influencer's account.

According to ZachXBT's analysis, the Sol team, responsible for the Solana-based memecoin CAT, compromised the X account of crypto influencer Gigantic-Cassocked-Rebirth (GCR) on May 26. Their aim was to manipulate the prices of specific coins.

The Sol team allegedly manipulated the launch of their own coin, CAT, on May 24, allowing them to gain control of more than 63% of the CAT supply. Subsequently, over $5 million worth of CAT was sold, and profits were distributed among multiple wallets.

A portion of the proceeds was deposited into Hyperliquid for trading. Minutes before the hack, the attackers opened long positions of $2.3 million on ORDI and $1 million on Ether.fi (ETHFI), anticipating price increases. However, only the ORDI token saw a temporary price spike after the hack, resulting in a profit of approximately $34,000. The attempt to manipulate the price of ETHFI was unsuccessful, resulting in a loss of $3,500.

ZachXBT criticized the attackers for their "low IQ" execution and warned against giving meme coin promoters a platform. The attack, facilitated by a SIM swapping scheme, highlights the vulnerability of crypto influencers to such breaches. SIM swapping involves tricking a mobile carrier into transferring a victim's phone number to a new SIM card controlled by the scammer.

This incident underscores the susceptibility of meme coins to manipulation and fraudulent activities. Scammers often exploit the hype surrounding meme coins to inflate prices artificially, leading to financial losses for unsuspecting traders.