South Korea Files First Criminal Case Over DEX Rug Pull, Indicts Five in Solana Meme Coin Scheme

South Korean prosecutors indicted five suspects in the country’s first criminal case tied to a Solana-based DEX rug pull. The CATFI token was promoted through a fake influencer persona called Eth Father, which prosecutors say was controlled by a ringleader identified by the surname Park. Prosecutors allege the group accumulated a large token position before promotion, then pumped the price to attract retail buyers. After retail participation, the group allegedly pulled liquidity, crashing the token price and leaving 256 investors with combined losses of about 900 million won. Prosecutors also allege illegal profits of around 400 million won. Investigators used onchain wallet tracing and social media evidence to connect promotional accounts to Park and four co-accused.

"South Korean prosecutors have indicted five suspects in the country's first-ever criminal case over a DEX rug pull. CATFI's Solana rug pull left 256 investors with 900 million won in losses, with organizers pocketing 400 million won. The landmark case has set a precedent as to how onchain evidence can pierce decentralized platform anonymity."

"The case centers on a meme coin called CATFI, which launched on a Solana-based decentralized exchange ( DEX), a trading platform that operates without a central authority or the listing checks required on traditional exchanges. According to prosecutors, the group behind CATFI quietly accumulated a large position in the token before publicly promoting it through a social media influencer persona called Eth Father."

"Park and his associates promoted CATFI to retail audiences as if they were disinterested third parties, manufacturing the appearance of organic community interest. Once the token's price had been pumped and retail buyers had entered, the group allegedly pulled the liquidity, crashing the price and leaving 256 investors with combined losses of approximately 900 million won (roughly $600,000)."

"Investigators built the case using onchain analysis to trace wallet addresses linked to the scheme, alongside social media evidence tying the Eth Father promotional accounts back to Park and the four co-accused. The prosecution is significant because DEXs have long existed in a regulatory gray zone, allowing tokens to be issued and listed on them without centralized approval processes."

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