- South Korea filed its first DEX rug pull prosecution tied to the Solana meme coin CATFI.
- Authorities accused the group of fake promotions and hidden wallet-controlled trading.
- Prosecutors said CATFI surged 1,001-fold before investors suffered about KRW 900 million in losses.
South Korean prosecutors have filed the country’s first criminal prosecution tied to a decentralized exchange rug pull case after charging a group accused of manipulating the Solana-based meme coin CATFI and generating millions of won in illegal profits.
Authorities said the case centered on a scheme that used fake promotions, wallet distribution tactics, and manipulated trading activity to attract investors before the project collapsed, leaving hundreds of traders with losses.
The Seoul Southern District Prosecutors’ Office’s Joint Investigation Department for Virtual Asset Crimes announced that two suspects were arrested and indicted on charges linked to digital asset market manipulation. One additional suspect was arrested without detention, while two others were charged with obstruction of justice for allegedly helping the main suspect evade investigators.
Prosecutors Detail CATFI Trading Scheme
According to investigators, the group created the CATFI meme coin on Pump.fun in early 2025, using approximately 10 million won in criminal funds before listing the token on a decentralized exchange. Prosecutors said the suspects later carried out a rug pull after attracting investor demand through misleading promotional activity.
Authorities identified the main suspect only by the surname Park. Prosecutors said Park operated online under the identity “Eth Father” and presented himself as an independent third-party commentator while promoting CATFI to investors.
Investigators claimed that the group controlled and managed the project’s social media accounts, artificially increased follower counts, and posted false announcements meant to create positive market sentiment around the token.
The prosecution also stated that the group distributed holdings across multiple crypto wallets and engaged in circular trading to conceal that the token supply remained under the issuing group’s control.
CATFI Price Jumped 1,001 Times Before Collapse
Investigators said CATFI surged 1,001-fold within 26 hours of issuance, during a period when Solana-based meme coin launches gained popularity on platforms such as Pump.fun. Prosecutors estimated that around 6,000 investors purchased the token during the trading period.
Authorities said 256 investors later recorded combined losses of about 900 million won after the project collapsed. The prosecution alleged the group generated approximately 400 million won in illegal proceeds from the scheme.
Related: South Korea Police Probe Crypto-Funded Revenge-for-Hire Network
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