Crypto Trader GCR Alleges Bribe at X Led to Account Hack

On May 26, 2024, the pseudonymous crypto trader known as GCR (Gigantic Rebirth) revealed that his account on X, previously Twitter, was hacked. The hack was allegedly facilitated through a bribe, which has raised substantial concerns about internal security within social media platforms. The compromised account was used to orchestrate a pump-and-dump scheme involving two tokens: ORDI and LUNA2.

The Hack and Its Execution

According to GCR, the hackers exploited a vulnerability by bribing an insider at X to gain administrative access to his account. Once they had control, they promoted ORDI, a BRC-20 token linked to the Ordinals protocol on the Bitcoin blockchain, and LUNA2, a token associated with the Terra Luna ecosystem. This resulted in a brief but significant spike in the price of ORDI on the crypto exchange Bybit, from $38 to $46, before it plummeted back to $40 within minutes.

Investigative Insights

Blockchain sleuth ZachXBT conducted an investigation revealing that the team behind the Solana-based memecoin CAT was potentially involved in the hack. Minutes before the hack, addresses tied to CAT’s team opened substantial long positions in ORDI and Ether.fi (ETHFI), indicating an orchestrated plan to manipulate the market. These positions were worth $2.3 million and $1 million, respectively.

The attackers utilized the compromised GCR account to post misleading information, thereby inflating the token prices temporarily. This manipulation allowed them to make a quick profit, although the poorly executed scheme led to minimal gains, approximately $34,000, before market corrections took place.

The Role of Social Engineering

This incident underscores the vulnerability of social media platforms to internal breaches. Social engineering tactics, such as bribing employees, pose a severe risk to account security. GCR’s case is a stark reminder that even advanced security measures can be undermined if insiders are compromised.

GCR had previously beefed up his account security after being warned about potential bribery attempts two months before the hack. However, the incident demonstrated that no security measures can fully protect against internal threats if employees are bribed for access.

Broader Implications for the Crypto Community

The GCR hack has broader implications for the cryptocurrency community. It highlights the need for robust internal security protocols within social media companies, especially those frequently used by influencers and high-profile individuals in the crypto space. The incident also raises awareness about the potential risks of investing based on social media endorsements, which can be easily manipulated.

Regulatory and Security Recommendations

To prevent similar incidents in the future, several measures can be recommended:

• Enhanced Internal Security: Social media companies must implement stringent security protocols and regular audits to detect and prevent internal breaches. Employee access to sensitive information should be limited and monitored closely.
• Increased Vigilance: Crypto influencers and traders should remain vigilant about the security of their accounts. Regular security updates and the use of multifactor authentication can help mitigate risks.
• Investor Education: Investors should be educated about the risks of following investment advice from social media without conducting their own due diligence. Relying solely on posts from influencers can lead to significant financial losses in cases of fraud or manipulation.
• Regulatory Oversight: Regulatory bodies should consider developing guidelines for social media platforms to enhance the security of accounts, especially those of high-profile individuals in the financial sector. Collaboration between regulators and social media companies can help create a safer environment for users.

Conclusion

The hacking of GCR’s account via a bribe at X highlights the critical need for enhanced security measures within social media platforms and greater vigilance among users. As the crypto market continues to grow and evolve, ensuring the security and integrity of online accounts remains paramount. This incident serves as a crucial lesson for the crypto community, emphasizing the importance of robust security practices and informed investment decisions.