Local media described it as the country’s first prosecution tied to a decentralized exchange rug pull. Authorities allege the suspects manipulated the token’s price through misleading social media promotion before selling their holdings for profit, causing nearly $599,000 in investor losses.
South Korea Arrests Group Behind CATFI
South Korean prosecutors charged a group of people in connection with an alleged rug pull involving the Solana-based meme coin CATFI, also known as Catpie. Local media described it as the country’s first prosecution tied to a decentralized exchange (DEX) rug pull.
The case is being handled by the Seoul Southern District Prosecutors’ Office’s Virtual Asset Crime Joint Investigation Division, which reportedly apprehended the suspects after an investigation into the token’s rapid rise and collapse earlier this year.
According to local outlet Digital Asset Works, the main suspect, who is 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.
Article from Digital Asset Works
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. The alleged scheme caused around $599,000 in financial losses for at least 256 investors.
The case is the first arrest linked to a meme coin rug pull under South Korea’s Virtual Asset User Protection Act. The prosecution also means that South Korean authorities are intensifying their fight to combat crypto-related fraud and coordinated market manipulation, particularly in the meme coin sector.
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.
All-time CATFI price chart (Source: Pump.fun)
CATFI initially gained traction in February of 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, likely hoping for a recovery.
