South Korea Indicts 2 in First DEX Rug Pull Case Under Virtual Asset Protection Law

According to Seoul Southern District Prosecutors' Office, on May 27, 2026, two defendants were indicted on market manipulation charges related to a Solana-based meme coin called CATFI. The case marks the first prosecution under South Korea's Virtual Asset User Protection Act involving fraudulent trading and the first arrest in a DEX rug pull incident.

The defendants issued CATFI on Pump.fun platform in early 2025 and subsequently drained the project, obtaining approximately 400 million won in illegal proceeds from roughly 10 million won in initial funds. Approximately 256 investors suffered losses totaling 900 million won, with around 6,000 investors having purchased the token after its price surged 1,001-fold within 26 hours of launch.