Summary

  • Five individuals have been charged by South Korean prosecutors in connection with a "rug pull" involving the Solana meme coin launchpad Pump.fun, marking the first application of the country’s Virtual Asset User Protection Act.
  • The creators of the meme coin CatFi are claimed to have caused losses totaling $600,000 for 256 investors.
  • In reaction to the arrests, traders significantly increased the price of the previously dormant CatFi token by nearly 6,000%, even though it remains 96% lower than its peak in February 2025.

Prosecutors in South Korea have filed charges against five individuals accused of executing a "meme coin rug pull" on the Pump.fun platform, resulting in damages amounting to 900 million WON (approximately $600,000). Following this news, traders have driven the price of the meme coin up nearly 6,000% in an effort to "unrug" it.

The Seoul Southern District Prosecutors' Office reported that the defendants launched the CatFi token on the Solana-based platform Pump.fun in February 2025. Initially, the meme coin surged to a market capitalization of $8.37 million, according to DEX Screener, before plummeting to just $12,170 within hours, attributed to "mass selling" by the accused, which prosecutors labeled as a "rug pull."

The prosecutors estimated that about 256 investors incurred losses of 900 million WON ($600,000), with the defendants allegedly profiting over 400 million WON ($267,000). Two individuals involved in promoting the token on social media have been apprehended, while the other three, who managed the technical aspects and assisted the others in evading capture, have been charged but remain at large.

This case is significant as it represents the inaugural enforcement of South Korea's Virtual Asset User Protection Act against an alleged rug pull, as noted in a translated press release. It also marks the first prosecution of a cryptocurrency-related crime conducted on a decentralized exchange in the country.

Nick Vaiman, co-founder of blockchain analytics firm Bubblemaps, remarked to Decrypt that the legal actions are a “positive step by the Korean government.” He emphasized that while the community has previously investigated rug pulls, outcomes were often disappointing due to a lack of real legal repercussions. Vaiman expressed hope that the new law will lead to greater justice and protect retail investors from similar losses going forward.

Phase 1. Rug
Phase 2. Prosecution
Phase 3. Unrug

solana:5AKD6AqoaHxuePTZUfSkiHM6gpCT4tJ6UMrNwDZGpump

— CatFi (@CatFi_Official) May 27, 2026

In an ironic twist, traders reacted positively to the news, propelling the previously inactive CatFi token from a market cap of $2,350 to around $167,000—a staggering increase of nearly 6,000% in less than 24 hours. Prior to this surge, the token had not seen any purchases since August 2025, as reported by block explorer SolScan.

A new X account has been established for the token, with its creators expressing intentions to "unrug" it. Investors who are still holding from the all-time high reached in February 2025 are likely hoping for a successful revival—despite the recent price jump, CatFi is still down 96% from its peak.

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