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

CATFI, a Faux Influencer, and a DEX Exit

The case facilities on a meme coin referred to as CATFI, which launched on a Solana-based decentralized alternate ( DEX), a buying and selling platform that operates with out a government or the itemizing checks required on conventional exchanges.

In keeping with prosecutors, the group behind CATFI quietly accrued a big place within the token earlier than publicly selling it by a social media influencer persona referred to as “Eth Father.” The character was managed by the alleged ringleader, recognized solely by the surname Park.

Park and his associates promoted CATFI to retail audiences as in the event that they have been disinterested third events, manufacturing the looks of natural group curiosity. As soon as the token’s worth had been pumped and retail patrons had entered, the group allegedly pulled the liquidity, crashing the worth and leaving 256 traders with mixed losses of roughly 900 million received (roughly $600,000).

The organizers are accused of pocketing round 400 million received, roughly $260,000, in unlawful earnings. All 5 suspects have been formally indicted by prosecutors in Seoul.

Investigators constructed the case utilizing onchain evaluation to hint pockets addresses linked to the scheme, alongside social media proof tying the “Eth Father” promotional accounts again to Park and the 4 co-accused.

The prosecution is important as a result of DEXs have lengthy existed in a regulatory grey zone, permitting tokens to be issued and listed on them with out centralized approval processes. On this regard, South Korea has been sharpening its crypto enforcement posture all through 2026.

Earlier this 12 months, the nation launched necessities for five-minute reconciliations and automatic kill switches. Furthermore, in January, authorities signaled a broader crypto coverage push that included reconsidering the nation’s long-standing ban on spot bitcoin ETFs.

Lastly, a brand new Digital Asset Act launched earlier this 12 months ushered in a 100% reserve requirement for stablecoins, all whereas the nation noticed $110 billion in crypto outflows (by 2025). The latter determine reveals simply how a lot enforcement and regulatory stress have formed native market habits.