South Korea Arrests Two in First DEX Rug Pull Prosecution Under Virtual Asset Protection Act; CATFI Surge 1,001x

According to BlockBeats, on May 27, South Korean prosecutors arrested and indicted two individuals in connection with a Rug Pull scam involving Solana Meme coin CATFI, marking the first prosecution under the Virtual Asset User Protection Act targeting decentralized exchange fraud.

The Seoul Southern District Prosecutors' Office stated that the suspects engaged in market manipulation and created CATFI on Pump.Fun in early 2025 before executing a rug pull on DEX platforms. The token surged 1,001x within 26 hours of launch, attracting approximately 6,000 investors. The scheme resulted in losses of roughly 9 billion Korean won (approximately $586,000) for 256 victims. Two additional individuals were charged as accomplices for assisting the suspects' escape.