- South Korea filed its first DEX rug pull lawsuit associated to Solana meme coin CATFI.
- Authorities accused the group of false promotions and secret pockets administration transactions.
- Prosecutors stated CATFI soared 1,001 instances earlier than traders suffered a lack of about 900 million gained.
South Korean prosecutors have filed the nation’s first legal fees in reference to the decentralized trade Ragpur scandal, after indicting a gaggle accused of manipulating the Solana-based meme coin CATFI and producing thousands and thousands of gained in unlawful income.
Authorities stated the case centered on a scheme that used faux promotions, pockets distribution ways, and manipulated buying and selling exercise to draw traders earlier than the venture collapsed and tons of of merchants suffered losses.
The Seoul Southern District Public Prosecutors Workplace’s Digital Asset Crime Joint Investigation Division introduced that two suspects have been arrested and indicted on fees associated to digital asset market manipulation. As well as, one suspect was arrested at dwelling, and the remaining two have been charged with obstructing official duties on suspicion of serving to the primary suspect evade investigation.
Prosecutors element CATFI buying and selling scheme
In keeping with investigators, the group created the CATFI meme coin on Pump.enjoyable in early 2025 and used roughly 10 million gained in legal funds earlier than itemizing the token on a decentralized trade. Prosecutors stated the suspects solicited investor demand by deceptive promoting after which carried out a rug-pulling operation.
Authorities recognized the primary suspect solely by his final identify, Park. Prosecutors stated Park operated on-line below the identification “S Father” and referred to himself as an unbiased third-party commentator when selling CATFI to traders.
Investigators alleged that the group managed and managed the venture’s social media accounts and posted false bulletins geared toward artificially growing the variety of followers and creating optimistic market sentiment in direction of the token.
Prosecutors additionally stated the group unfold its holdings throughout a number of cryptocurrency wallets and engaged in round buying and selling to hide that the provision of tokens was below the management of the issuing group.
CATFI worth jumped 1,001x earlier than collapse
In keeping with researchers, CATFI soared 1,001 instances inside 26 hours of its launch, throughout a time when Solana-based meme coin launches have been gaining reputation on platforms similar to Pump.enjoyable. Prosecutors estimated that roughly 6,000 traders bought tokens in the course of the buying and selling interval.
Authorities introduced that 256 traders posted a complete lack of about 900 million gained after the venture collapsed. Prosecutors claimed that the group made roughly 400 million gained in unlawful income by this scheme.
Associated: South Korean police examine cryptocurrency-funded revenge community
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