South Korean prosecutors have made their first arrests and filed charges in a rug pull scam involving a decentralized exchange, signaling a tightening of enforcement against on-chain fraud. The case centers on the token CATFI, with prosecutors alleging that the individuals involved profited through price manipulation and false advertising, ultimately causing losses to multiple investors.
The involved token is CATFI.
Prosecutors allege that a group manipulated the price of CATFI within a DEX trading environment, illicitly gaining approximately 4 billion KRW, equivalent to about $260,000. Investigators stated that this case marks South Korea’s first arrest and prosecution related to a “rug pull” scheme on a DEX.
The main suspect is accused of impersonating a crypto influencer.
Investigators stated that the main suspect, Park, impersonated the crypto influencer "Eth Father" online to promote CATFI misleadingly and attract investors to buy. Subsequently, the individuals involved are accused of executing a rug pull, causing the token's price and liquidity to collapse rapidly.
256 investors lost approximately 900 million KRW.
The prosecution stated that the case affected 256 investors, resulting in total losses of approximately 900 million Korean won.
- Illegally obtained approximately 400 million KRW
- Investors lost approximately 900 million KRW.
- The number of affected individuals is 256.
This case also sends a clearer signal of enforcement: even if related transactions occur on decentralized platforms like DEXs, South Korean regulators and prosecutors are intensifying efforts to hold parties accountable for crypto fraud.