South Korea Makes First Rugpull Arrest Under New Crypto Law!

South Korean authorities have arrested suspects behind CatFi, a Solana-based memecoin, in what marks the country's first criminal case prosecuted under its newly enacted virtual asset legislation targeting rugpulls. The case signals a meaningful shift: regulators are no longer treating memecoin fraud as a grey area.

CatFi followed the now-familiar playbook — token launched, liquidity pulled, investors left holding worthless bags. What's different this time is the legal framework. South Korea's updated crypto laws, which came into force in 2024, explicitly criminalise coordinated exit scams, giving prosecutors the tools to pursue cases that previously fell through jurisdictional cracks.

The arrests carry implications well beyond South Korea.