BlockBeats News, May 27th. The South Korean prosecutor's office has prosecuted a Rug Pull fraud case related to the Solana ecosystem Meme coin CATFI. This is the first time in the country that such behavior on a decentralized exchange (DEX) has been arrested and prosecuted under the "Virtual Asset User Protection Act."

The Virtual Asset Crime Joint Investigation Department of the Seoul Southern District Prosecutor's Office stated that two main suspects involved in market manipulation have been arrested and prosecuted, another person has been prosecuted without detention, and two others have been charged with assisting the main suspects in fleeing. The investigation revealed that the group created the CATFI token on the Pump.Fun platform in early 2025 and conducted a rug pull after listing on a decentralized exchange. The main suspect, Mr. Park, acted under the identity of the internet celebrity "Eth Father," promoting the token through the dissemination of false positive news, purchasing fans, and using multiple wallets to conceal ownership and engage in wash trading to hide the fact that the token was under their control.

The price of the CATFI token once skyrocketed 1001 times within 26 hours of issuance, with approximately 6,000 investors buying in, ultimately leading to 256 investors losing about 900 million Korean won (approximately $58.6 thousand). The prosecutor's office stated that the group used about 10 million Korean won of criminal funds to obtain about 400 million Korean won in illegal profits.

This case marks South Korea's crackdown on virtual asset crimes expanding from centralized exchanges to the DEX field. The prosecutors stated that they will "resolutely respond to actions that disrupt the digital asset market and undermine public trust." This case may become a key precedent in South Korea for handling Meme coin fraud, social media promotion, and DEX transactions under the Virtual Asset Act. Previously, in January 2025, South Korea dealt with the first price manipulation case on a centralized exchange platform under the same law and has recently strengthened regulations, including requiring financial internet celebrities to disclose holdings and paid promotion information.