TLDR
- South Korean prosecutors filed the first DEX rug pull case tied to unfair trading rules.
- Two suspects face detention indictments, and three others were charged without detention, local reports said.
- Investigators accuse Park, known as Eth Father, of posing as an outside CATFI promoter online.
- CATFI allegedly surged 1,001 times within 26 hours, drawing about 6,000 buyers before the drop.
- Prosecutors allege wallet trading, false news, and social media tactics drove investor losses in CATFI.
South Korea has filed its first arrest and prosecution in a DEX rug pull case after the CATFI token crash. Prosecutors say a group used fake promotion, social media hype, and wallet trades to manipulate the Solana meme coin. The case left 256 investors with losses of about 900 million won.
Prosecutors Charge Group Over CATFI Rug Pull
The Seoul Southern District Prosecutors’ Office filed charges through its virtual asset crime team. Two suspects were indicted while detained, and three others were indicted without detention.
Local reports described the case as South Korea’s first arrest and prosecution in a DEX rug pull case. Prosecutors also linked it to the Virtual Asset User Protection Act.
The office said the case used the law’s “unfair trading” rules. Prosecutors allege the group manipulated CATFI’s price and gained about 400 million won.
“Eth Father” Alias Named in Social Media Promotion
Investigators named the main suspect as a man surnamed Park. He allegedly used the online name “Eth Father” while promoting CATFI on social media.
Prosecutors said Park posed as a key opinion leader. They allege he presented CATFI as an independent third-party project to attract buyers.
The group also allegedly spread false positive news about CATFI. Investigators said they used social media accounts and follower metrics to build trust.
CATFI Surge Drew Thousands Before Losses
According to reports, CATFI launched in early 2025 on a decentralized exchange. Its price allegedly rose 1,001 times within 26 hours of launch.
That rapid rise drew about 6,000 investors, according to investigators. However, prosecutors said 256 investors later lost about 900 million won.
The suspects allegedly used several wallets for circular trades. Prosecutors said those trades helped push interest before the group sold tokens.
The case now moves through South Korea’s court system. The suspects have been charged, but the court has not issued final rulings.
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