Prosecutors allege the suspects defrauded investors of $260,000 via a fake influencer scheme targeting CATFI token holders.
South Korean prosecutors have charged a criminal group for manipulating the Solana-based meme coin CATFI, marking the country’s first arrest in a decentralized exchange rug pull case. The suspects allegedly generated KRW 400 million ($260,000) in illegal profits by falsely promoting the token as a legitimate investment.
The main suspect, identified by the surname Park, posed as the influencer ‘Eth Father’ on social media to lure investors. The scheme resulted in KRW 900 million in losses for 256 victims, according to investigators. The case highlights growing regulatory scrutiny of fraud in decentralized finance.
No immediate market reaction was reported, but the prosecution signals heightened enforcement against crypto-related crimes in South Korea.