South Korea charges five in Solana CATFI DEX rug pull

South Korean prosecutors have charged five people in connection with a rug pull linked to CATFI, a meme token on the Solana blockchain. Authorities allege the operation used a decentralized exchange launchpad and yielded roughly 400 million won in illicit proceeds while 256 investors suffered combined losses of about 900 million won.

Investigators identified a suspect with the surname Park as the alleged ringleader. Park is accused of running the social media account ‘Eth Father’ and posing as an unrelated third party to promote CATFI to followers. Prosecutors say Park and associates created CATFI on the Solana token launchpad Pump.fun with roughly 10 million won in initial capital, then listed the token on a decentralized exchange.

The indictment alleges the operators used multiple wallets and circular trading to hide their control of the token supply. CATFI’s price climbed about 1,001 times within 26 hours of listing, drawing roughly 6,000 buyers before the alleged operators sold their holdings. Prosecutors estimate the group realized about 400 million won in illicit profits and that 256 investors were left with total losses near 900 million won.

The charges were brought under the fraudulent trading provisions of South Korea’s user protection law, which took effect in July 2024. Officials describe the case as the country’s first arrest and prosecution tied specifically to a scheme carried out on a decentralized exchange; an earlier prosecution under the same law related to market manipulation on a centralized exchange.

Law enforcement action includes two suspects who were detained and indicted, one charged without detention, and two additional accomplices facing separate charges for allegedly helping the main suspect evade investigators. Seoul’s newly formed investigative crime unit for virtual assets led the probe.

Solana has been the venue for prior rug pulls, but criminal prosecutions connected to decentralized exchange activity have been uncommon. Prosecutors announced they will pursue schemes that erode investor confidence and market integrity.