CATFI Memecoin Operators Face Charges in South Korea's Inaugural DEX Rug-Pull Prosecution: Report
Prosecutors in South Korea have filed charges against individuals behind the CATFI memecoin scheme, representing the nation's inaugural prosecution of a DEX-based rug-pull under cryptocurrency legislation.
Authorities in South Korea have brought charges against individuals involved in an alleged fraudulent scheme surrounding the Solana-based memecoin known as Catpie, or CATFI, representing what domestic news outlets have characterized as the nation's inaugural decentralized exchange (DEX) rug-pull criminal prosecution.
This action represents South Korea's initial arrest connected to a memecoin-related rug pull conducted under the framework of the Virtual Asset User Protection Act and demonstrates that law enforcement agencies are implementing measures to combat orchestrated cryptocurrency price manipulation schemes.
A rug pull represents a fraudulent exit strategy wherein token creators actively promote their project to lure external capital before abruptly withdrawing and liquidating their holdings, resulting in substantial monetary losses for subsequent purchasers.
Cointelegraph contacted the Supreme Prosecutors' Office seeking additional commentary but did not receive a reply prior to publication.
This prosecution emerges during a period of substantial shrinkage in South Korea's domestic cryptocurrency trading sector, where transaction volume on principal won-denominated digital currency exchanges fell to merely 8% of the trading volume recorded on the KOSPI stock exchange, according to a report published by Digital Asset Works earlier on Wednesday.
CATFI token crashes 99% after rug pull
After its original climb to a market capitalization of $8.99 million during February 2025, the CATFI token has experienced a devastating 99% collapse to a market capitalization of $57,000 as of the time of writing.
Notwithstanding the dramatic price collapse, 1,512 investors continue to maintain positions in the token with expectations of a potential rebound, with the most significant holder, identified as wallet "5Q54," maintaining control of 18% of the token's complete supply, according to information provided by Pump.fun.
Fraudulent rug pull schemes and orchestrated manipulation tactics remain ongoing threats to the broader cryptocurrency ecosystem.
During May of this year, a Solana-based memecoin associated with Keith Gill's Roaring Kitty X social media profile experienced a comparable rug pull incident, with the unidentified developer extracting approximately $729,000 in funds as the token experienced a near-total loss of value, according to a Cointelegraph report.