- South Korean prosecutors charged five people with a “rug pull” of the CatFi meme coin on Pump.fun.
- The landmark case is the first application of South Korea‘s new Virtual Asset User Protection Act.
- The alleged scam caused $600,000 in damages to 256 investors.
- Following the news, traders attempted to “unrug” the token, causing a 6,000% surge in its dormant value.
South Korean prosecutors have launched a landmark crackdown, charging five individuals over a meme coin rug pull on the Solana launchpad Pump.fun in February 2025. The Seoul Southern District Prosecutors’ Office alleges the creators of “CatFi” orchestrated a mass sell-off, causing rapid collapse. Consequently, 256 investors suffered damages totaling $600,000, according to official reports, while the defendants pocketed over $267,000.
This case marks the first prosecution under South Korea‘s new Virtual Asset User Protection Act and the nation’s first crypto crime prosecution involving a decentralized exchange. Nick Vaiman, co-founder of Bubblemaps, told Decrypt it was a “good move by the Korean government.” “Now, with the law and real precedent, we hope to see more justice and fewer retail investors getting burned,” he said.
Meanwhile, the news ironically sparked a frenzied trading revival of the dormant CatFi token. Data from Phantom shows its market cap surged nearly 6,000% from $2,350 to around $167,000. A new X account for the token claims its creators now want to “unrug” it. However, the token remains 96% below its February 2025 peak of $8.37 million, per DEX Screener data.
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