CatFi Creators Charged Over $600K Solana Meme Coin Rug Pull

• South Korean prosecutors charged five people linked to the CatFi meme token.
• The creators are accused of causing 900 million won, or about $600,000, in damages to 256 investors.
• The case marks South Korea’s first rug pull prosecution under its new Virtual Asset User Protection Act.

South Korean prosecutors have charged five people accused of running a CatFi meme coin rug pull that allegedly caused about $600,000 in losses to 256 investors. The case has drawn attention as the first time prosecutors have used South Korea’s new Virtual Asset User Protection Act against an alleged rug pull.

CatFi launched on the Solana token launchpad Pump. fun in February 2025. After prosecutors announced the charges, the dormant token jumped nearly 6,000% as traders attempted to revive what remained of the project.

CatFi Creators Face Rug Pull Charges

The Seoul Southern District Prosecutors’ Office said five defendants created and promoted CatFi before allegedly dumping large token holdings on buyers. Prosecutors calculated investor damages at 900 million won, or about $600,000, while the defendants allegedly gained more than 400 million won, equal to around $267,000. 

CatFi reportedly reached an $8.37 million market capitalization shortly after launch before collapsing to about $12,170 within hours. Prosecutors described the sharp crash as the result of “mass selling” by the defendants, which they classified as a rug pull. 

Two defendants tied to CatFi’s social media promotion were arrested. Three others, accused of handling technical operations and helping the arrested defendants avoid capture, were charged without detention.

The case is notable for South Korea’s crypto enforcement record. According to the translated prosecutor’s release cited in reports, this is the first application of the Virtual Asset User Protection Act to penalize an alleged rug pull. It is also South Korea’s first prosecution of a crypto crime carried out through a decentralized exchange.

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Dormant Token Surges After Arrests

The legal action triggered an unusual market reaction. CatFi, which had reportedly seen no buy transactions since August 2025, surged almost 6,000% after news of the charges spread. The token’s market cap rose from about $2,350 to roughly $167,000 in less than a day. 

A new X account linked to the token appeared after the move, with traders claiming they wanted to “unrug” CatFi. However, the token remains far below its February 2025 peak, still down about 96% despite the sharp rebound.

The move reflects the extreme volatility around Solana meme coins. Pump.fun has become a major venue for quick token launches, but researchers and compliance firms have repeatedly warned that the low cost of issuance has also made the market vulnerable to pump-and-dump behavior. One recent study on Solana rug pulls found that many schemes have short lifecycles and rely on organized on-chain trading patterns. 

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Korea Sets New Crypto Precedent

The CatFi case gives South Korea a new enforcement test under its virtual asset rules. Until now, many meme coin rug pulls have produced community investigations but few direct criminal consequences.

Nick Vaiman, co-founder of blockchain analytics firm Bubblemaps, told Decrypt the charges were a “good move by the Korean government,” adding that legal precedent could reduce the number of retail investors being harmed. 

Even so, CatFi sits at the center of two separate stories. Prosecutors are pursuing alleged fraud tied to its 2025 collapse, while traders are speculating on the same token after the arrests. The case may now shape how South Korean authorities handle future meme coin launches, especially those involving decentralized exchanges and Solana-based launchpads.