Seoul Southern District Court sentenced crypto influencer Park, known as 'EtherFather', to four years in prison for fraudulent trading under the Virtual Asset User Protection Act. Accomplice A received a 2.5-year sentence while accomplice B was given a three-year suspended sentence. The trio was indicted in May for launching the CATFI memecoin on Pump.fun in early 2025, listing it on a decentralized exchange, and executing a rug pull that netted 400 million won in illicit profits. This case marks the first prosecution for fraudulent trading under South Korea's Virtual Asset User Protection Act and the first criminal charges for a DEX rug pull scheme.
Court Sentences Park and Accomplices for CATFI Rug Pull
Seoul Southern District Court's 11th Criminal Division, presided by Chief Judge Jang Chan, sentenced Park to four years imprisonment and ordered confiscation of approximately 223 million won. Accomplice A received two years and six months imprisonment with confiscation of approximately 45 million won. Accomplice B was sentenced to three years imprisonment suspended for five years, with confiscation of approximately 75 million won and 24 ETH.
The court stated the crime "seriously undermines the fair price formation function of the digital asset market and severely damages general investors' trust in the market." Judge Jang noted that the defendants "caused unpredictable losses to unspecified general investors who traded digital assets based on artificially created appearances."
CATFI Memecoin Scheme Defrauded Investors of 400 Million Won
The defendants spent several million won to issue the Solana-based memecoin CATFI on Pump.fun in early 2025. After listing CATFI on a decentralized exchange, they executed a rug pull that generated 400 million won in illicit profits.
The court highlighted aggravating factors in sentencing. A destroyed evidence including promotional accounts immediately after the crime. Park failed to appear for investigative summons and fled. Multiple victims petitioned for severe punishment of the defendants.
Case Sets Legal Precedent Under Virtual Asset User Protection Act
This prosecution represents the first application of fraudulent trading charges under South Korea's Virtual Asset User Protection Act. The case also marks the first criminal indictment for a rug pull scheme on a decentralized exchange.
The Virtual Asset User Protection Act prohibits fraudulent trading practices that artificially manipulate digital asset prices or create misleading market conditions. The law aims to protect retail investors from schemes that exploit information asymmetries in crypto markets.
FAQ
What sentence did 'EtherFather' Park receive for the CATFI rug pull?
Seoul Southern District Court sentenced Park to four years in prison and ordered confiscation of approximately 223 million won. Two accomplices received sentences of 2.5 years imprisonment and three years suspended sentence respectively.
How did the CATFI rug pull scheme operate?
The defendants launched the CATFI memecoin on Pump.fun in early 2025, listed it on a decentralized exchange, then executed a rug pull that defrauded investors of 400 million won in illicit profits.
