South Korean prosecutors charged a gaggle in an alleged rug pull involving the Solana-based memecoin Catpie, or CATFI, in what native media described because the nation’s first decentralized alternate (DEX) rug-pull prosecution.
The group was reportedly apprehended by the Seoul Southern District Prosecutors’ Workplace’s Digital Asset Crime Joint Investigation Division. The primary suspect, surnamed Park, allegedly posed as “Eth Father” on social media platforms and falsely promoted CATFI as an impartial third-party earlier than executing a rug pull that precipitated about 900 million gained ($599,000) in monetary harm to a minimum of 256 buyers, native information outlet Digital Asset Works mentioned Wednesday.
Prosecutors allege the group promoted CATFI on social media, drove the token’s value up greater than 1,000-fold inside 26 hours after which bought their holdings for about 400 million gained ($260,000) in unlawful revenue.
The transfer marks South Korea’s first arrest tied to a memecoin rug pull underneath the Digital Asset Person Safety Act and indicators that authorities are taking steps in opposition to coordinated crypto value manipulation.
Rug pulls are misleading exit scams the place the token deployers promote a undertaking to draw outdoors funding earlier than immediately abandoning it and promoting their funds, inflicting important monetary losses to later consumers.
Cointelegraph reached out to the Supreme Prosecutors’ Workplace for remark however had not obtained a response by publication.
KOSPI buying and selling quantity versus quantity on won-based home South Korean exchanges. Supply: Digital Asset Works
The event comes amid a big contraction of South Korea’s home digital asset buying and selling market, which noticed buying and selling quantity on main won-based cryptocurrency exchanges decline to simply 8% of the KOSPI inventory market’s buying and selling quantity, Digital Asset Works reported earlier on Wednesday.
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CATFI token crashes 99% after rug pull
Following its preliminary surge to an $8.99 million market capitalization in February 2025, the CATFI token has since crashed by 99% to an $57,000 market capitalization on the time of writing.
Regardless of the crash, 1,512 buyers have been nonetheless holding the token in hopes of restoration, with the biggest holder, pockets “5Q54,” holding 18% of the token’s complete provide, knowledge from Pump.enjoyable exhibits.
The X account that beforehand promoted the undertaking has since been deleted.
CATFI/USD, all-time chart. Supply: Pump/enjoyable
Rug pulls and coordinated manipulation makes an attempt proceed threatening the broader cryptocurrency house.
Earlier in Might, a Solana memecoin linked to Keith Gill’s Roaring Kitty X account suffered the same rug pull, because the nameless developer cashed out about $729,000 whereas the token misplaced most of its worth, Cointelegraph reported.
One unlucky cryptocurrency dealer misplaced almost $190,000 on the memecoin inside an hour, underscoring the dangers of memecoin buying and selling.
Journal: Bitcoiners eye ‘promote in Might,’ SBF’s bid for brand spanking new trial shut down: Hodler’s Digest, April 26 – Might 2