South Korean Authorities Crack Down on DeFi Rug Pull Scheme

South Korea's crackdown on decentralized finance (DeFi) scams has gained momentum, with authorities filing the country's first criminal case against a rug pull scheme involving a Solana-based meme coin called CATFI. Prosecutors have charged a group of individuals with manipulating market prices and misleading investors to drain their funds.

According to investigators, the main suspect posed online as an influencer under the pseudonym 'Eth Father' and promoted CATFI on social media platforms, creating false hype around the token. After attracting buyers, the group allegedly pulled liquidity, crashing the price of CATFI and causing significant losses for 256 investors.

The case is notable for being the first DEX rug pull prosecution in South Korea, with authorities using on-chain analysis and social media evidence to trace wallets and link promotion accounts to the alleged organizers. Prosecutors have charged the group with fraud and violations of local capital markets and criminal profit laws.