South Korea Makes First DEX Rug Pull Arrest in Catfi Case!

South Korean prosecutors have charged a criminal group in what marks the country's first-ever arrest and prosecution tied to a decentralized exchange rug pull. The case centers on CATFI, a Solana-based meme coin whose price was allegedly manipulated by the group to generate roughly KRW 400 million — approximately $260,000 — in illegal proceeds.

The milestone is significant beyond the dollar amount: South Korea has historically been aggressive on centralized exchange fraud, but this is the first time prosecutors have successfully pursued a DEX-native scheme through to arrest and formal charges. The CATFI case sets a legal precedent that DEX liquidity manipulation is prosecutable under existing Korean financial crime statutes.