TheBlock
A pseudonymous trading group claims it made more than $6 million by buying Cash Cat and PONS before their Robinhood Chain listings. The traders said they identified Cash Cat through a July 27 BitGo pull request, tracked Wintermute's onchain activity and then accumulated about 4% of the token's supply before Robinhood announced its listing on Aug. 6. Public records support parts of the timeline, although the reported profits and control of the relevant wallets could not be independently verified.
Why it matters
The alleged edge relied on information that was publicly visible before launch. BitGo's proposed code change named Cash Cat, and a release on July 29 added the token alongside support for 99 Robinhood Chain stock tokens. The traders also monitored Wintermute, a large market maker named in a Robinhood SEC filing, for wallet transfers and trading approvals connected to Robinhood.
The claim of a $1.1 million Cash Cat purchase by fresh wallets was supported by onchain records reviewed by The Block. A wallet also placed an $11,000 limit order shortly before the traders made their largest purchase, raising suspicions of insider activity. Separately, on Sept. 15, the Department of Justice charged two former Robinhood engineers with commodities fraud and wire fraud for allegedly trading perpetual futures on Hyperliquid ahead of Robinhood listing announcements.
Market impact
The episode highlights an information gap between public development activity, market-maker activity and listing announcements. Cash Cat was eventually added to a public list of tokens approved by Wintermute about 27 hours before the Robinhood listing, although the trader said the key alert arrived nearly two days earlier. The group claims it sold into the Cash Cat frenzy for more than $4 million and later made $2 million on PONS, though those figures remain unverified.
For Robinhood Chain, the larger risk is reputational and regulatory rather than a confirmed effect on token prices. Alleged frontrunning through public signals and suspected insider trading can weaken confidence in the fairness of early listings and invite closer scrutiny of the exchange's controls.
Frequently asked questions
-
What evidence supports the alleged Cash Cat frontrunning?
A BitGo pull request named Cash Cat before its Robinhood listing, while onchain records showed fresh wallets buying the token beforehand. The reported profit and control of those wallets could not be verified.
-
How much profit did the traders claim?
The group claimed more than $6M in total, including over $4M from Cash Cat and $2M from PONS. Public wallet activity supports parts of the sequence, but not the profit figures.
-
Did Wintermute approve Cash Cat before Robinhood's listing?
The trader says a monitoring bot detected the approval on Aug. 3. A public Wintermute list added Cash Cat around 6:31 a.m. ET on Aug. 5, about 27 hours before Robinhood's listing.
-
What legal action followed the alleged Robinhood insider trading?
On Sept. 15, the DOJ charged two former Robinhood engineers with commodities fraud and wire fraud over alleged Hyperliquid perpetual-futures trades ahead of Robinhood listing announcements.
-
What does the episode mean for Robinhood Chain market integrity?
The episode exposed a potential gap between public code signals, market-maker activity and listing announcements. It also raises questions about insider trading and oversight on the network.
Crypto News
Whale Alert
CoinTelegraph
WatcherGuru
CoinDesk
WuBlockchain
Crypto Capital Venture