South Korea Charges CATFI Meme Coin Team in First DEX Rug Pull Case
South Korean prosecutors have charged a group of individuals in connection with an alleged rug pull involving the Solana-based meme coin CATFI, also known as Catpie. The Seoul Southern District Prosecutors' Office's Virtual Asset Crime Joint Investigation Division apprehended the suspects following an investigation into the token's rapid rise and collapse in February 2025. Local media described the case as the country's first prosecution tied to a decentralized exchange rug pull. Authorities allege the group manipulated CATFI's price through misleading social media promotion before selling their holdings for profit, causing approximately $599,000 in losses for at least 256 investors. The prosecution marks the first arrest under South Korea's Virtual Asset User Protection Act related to a meme coin rug pull, signaling intensified enforcement against crypto-related fraud and coordinated market manipulation.
Arrest Details and Allegations
According to local outlet Digital Asset Works, the main suspect, identified only by the surname Park, allegedly operated online under the pseudonym "Eth Father." Prosecutors claim Park promoted CATFI on social media platforms while pretending to be an independent third-party supporter of the project. Authorities allege that the promotion campaign was intentionally misleading and designed to attract investors before the group dumped their holdings for profit.
Investigators stated that the token's price surged by more than 1,000% in just 26 hours after an aggressive social media marketing campaign fueled interest in the project. Prosecutors allege that once enough investors entered the market, the group sold off their positions, which generated approximately 400 million won, or around $260,000, in illegal profits.
Price Manipulation Mechanics
The alleged scheme caused around $599,000 in financial losses for at least 256 investors. Rug pulls are a common form of crypto scam where project creators heavily promote a token to attract liquidity and investor attention before suddenly abandoning the project and selling their holdings. This typically causes the token's value to collapse, and leaves retail investors with sizable losses.
Token Collapse
CATFI initially gained traction in February 2025, and reached a market capitalization of approximately $8.99 million during its peak. However, the token has since crashed by around 99%, reducing its market capitalization to roughly $57,000. Despite the dramatic collapse, blockchain data from Pump.fun showed that more than 1,500 investors were still holding the token at press time.
FAQ
What is the CATFI rug pull case?
South Korean prosecutors charged a group for allegedly manipulating the Solana-based meme coin CATFI through misleading social media promotion, then selling their holdings for approximately $260,000 in illegal profits, causing $599,000 in investor losses.
Why is this case significant?
It represents South Korea's first prosecution tied to a decentralized exchange rug pull and the first arrest under the Virtual Asset User Protection Act related to a meme coin rug pull.
What happened to CATFI's price?
The token surged over 1,000% in 26 hours during February 2025, reaching a market cap of approximately $8.99 million, before collapsing by 99% to around $57,000.
