CATFI rug pull leads to first indictment under new crypto law

A group accused of orchestrating a rug pull with the Solana-based meme coin CATFI has been indicted and arrested, Digital Asset reported. The case marks the first time prosecutors have applied the unfair trading provisions of South Korea's act on virtual asset user protection and the first arrest related to a decentralized exchange (DEX) rug pull. According to the investigation, the group spent several million won to issue CATFI on Pump.fun in early 2025. They then listed the token on a DEX before executing the rug pull. The price of CATFI surged 1,001 times within 26 hours of its launch, attracting around 6,000 investors. Ultimately, 256 investors suffered losses totaling 900 million won (around $652,000). The perpetrators are alleged to have made approximately 400 million won (around $290,000) from an initial investment of 10 million won (about $7,200).