South Korean Authorities Take Action Against CATFI Memecoin Operators

South Korean authorities have taken action against a group linked to the Solana-based memecoin CATFI, marking what is described as the country's first prosecution tied to a rug pull on a decentralized exchange. The case involves allegations of price manipulation, exit scams, and illicit profits, which has led to significant losses for at least 256 investors.

The authorities allege that the defendants used social media to hype up CATFI, driving its price up over 1,000 times within a span of 26 hours before selling their holdings for roughly 400 million won in illicit profits. The rug pull inflicted about 900 million won ($599,000) in losses on at least 256 investors.

This development comes amid a broader market downturn in South Korea, with won-based exchanges seeing shrinking volumes. The case adds to the ongoing scrutiny of domestic crypto markets and highlights the risks associated with memecoins and similar high-risk assets.