Hackers accessed Roaring Kitty's accounts to promote RKC, causing its value to plummet after a brief surge.
In a significant breach, hackers gained access to the social media accounts of trader Keith Gill, widely known as Roaring Kitty. The attackers leveraged this access to promote the RKC meme coin, resulting in a dramatic surge in its price.
After the hackers posted the contract address for RKC, the token's value experienced a staggering 90% decline following its initial spike. Reports indicate that the developers of RKC had pre-planned this strategy, acquiring 39.52% of the total supply by distributing 20 SOL (approximately $1,950) across ten wallets before the posts were made.
Once the posts were live, the developers sold their holdings for 5,071 SOL, netting around $495,000. Additionally, they accrued 1,209 SOL ($118,000) in transaction fees, bringing their total profit to an estimated $611,000.
The posts included an image of a cat wearing a red scarf, followed by a hand with a red bandage, reminiscent of Gill's symbolic gestures during the 2021 GameStop saga. Both images were removed within 30 minutes.
The incident also had repercussions for GameStop shares, which initially rose by 13% before losing those gains. Speculation has arisen regarding whether Gill's family members were involved, particularly due to activity noted on his brother's account.
Analysts believe the hackers may have intended to launch the meme coin through the Pump.fun platform, followed by a rapid withdrawal of liquidity. This incident underscores the ongoing volatility and risks associated with meme coins and social media influence in trading.
Gill, who became a prominent figure during the retail investor movement against hedge funds, has previously faced scrutiny for potential market manipulation, as highlighted by reports in June 2024.
