Solana Meme Coin’s 1000X Rugpull: South Korea Enforces New Law for the First Time

South Korean prosecutors have arrested five individuals who defrauded investors through the Solana (SOL)-based meme coin project CatFi, under the new cryptocurrency law, initiating the country’s first rug pull case.

New laws regulating the cryptocurrency market in South Korea have begun to take a tough stance against fraud cases. The Seoul Southern District Prosecutors’ Office conducted an operation against a network that defrauded thousands of investors with a project called CatFi. Authorities have taken legal action against five suspects who suddenly abandoned the project and fled with investors’ money, i.e., committed a rug pull. Two of these suspects have been arrested, while the other three are awaiting trial without detention.

The suspects launched the CatFi project on the Pump.fun platform at the beginning of 2025. To attract investors, they used fake social media accounts and a co-conspirator who presented themselves as an independent influencer. During this process, they engaged in wash trading, artificially inflating trading volume by buying and selling among themselves. Additionally, they gained investors’ trust with false promises that the tokens would remain locked. #WinGoldBarsWithGrowthPoints