Wash trading and multiple wallets were used to distribute CATFI and obscure supply control, fueling a rapid price surge and sizable investor losses.

CATFI’s promotional X account has been deleted, underscoring ongoing concerns about rug pulls and coordinated manipulation in crypto markets.

The group allegedly earned about 400 million won in illicit profits and caused about 900 million won in losses to around 256 investors.

Investigators say fake social channels and influencer impersonation were used to lure investors, including inflated follower counts and false lock-up announcements.

CATFI reportedly launched on the Pump.fun Solana launchpad in early 2025 and was abandoned after investors poured capital into it.

Investigators traced wallet addresses after online sleuths flagged them; authorities say earlier police had closed the case after claims of a hack.

Authorities warned that illicit gains in the virtual asset market will be pursued and that market manipulation can ruin investors financially and personally.

About 6,000 investors bought CATFI, with the majority of losses concentrated among 256 investors, while illicit profits approached 400 million won.

South Korean prosecutors have charged five individuals over a rug pull tied to the Solana-based meme coin CATFI, marking the country’s first arrest and prosecution linked to a decentralized exchange scheme.

The case is prosecuted under South Korea’s Virtual Asset User Protection Act, extending accountability to on-chain activity and decentralized exchanges, not just centralized platforms.

These charges represent the first use of fraudulent trading provisions under the act, which took effect in mid-2024, and target a DEX-based scheme for the first time.

Prosecutors allege operators pushed CATFI aggressively, used aliases like “Eth Father,” and employed wallet splitting and wash trading to create an artificial demand.