South Korea makes its first arrest of the mastermind behind Pump.Fun’s token Rug Pull! CATFI surges by 1,000 times, with 6,000 people left holding the bag as it goes to zero

South Korea’s crackdown on virtual-asset crimes has officially expanded from CEX to DEX. For the first time, Korean prosecutors have filed charges under the Virtual Asset User Protection Act against Rug Pull conduct on decentralized exchanges (DEX), arresting a total of 5 people, including the mastermind who calls himself “Eth Father.”
(Background: Koreans don’t trade crypto anymore! Trading volume is down to just 8% of KOSPI, and the kimchi premium has turned negative)
(Additional background: $ESPORTS A single-day bloodbath of 93%! Yooldo Games is suspected of a Rug Pull—slamming 200 million tokens, cashing out $13.6 million)

Key Takeaways

• South Korea’s first arrest of five people, including the DEX Rug Pull mastermind “Eth Father,” under the Virtual Asset User Protection Act
• On Pump.Fun, the CATFI token surged 1,001 times within 26 hours; 256 investors lost about 900 million won (about $586,000)
• The criminal group used only about 10 million won in initial capital to extract 400 million won in illegal profits; regulatory scrutiny has extended from CEX to DEX

Using 10 million won in initial capital to earn 400 million won in returns—the return rate is 40 times. This is not some new DeFi strategy; it is stated in the indictment from the Seoul Southern District Prosecutors’ Office.

The Virtual Asset Crime Joint Investigation Division of the Seoul Southern District Prosecutors’ Office announced that it has arrested and indicted two of the main suspects accused of “market manipulation,” indicted another person without detention, and charged two others for allegedly assisting the main suspects in evading capture. The main suspect, Park, who goes by the influencer name “Eth Father,” promoted on Crypto Twitter; in early 2025, he created the CATFI token on the Pump.Fun platform in the Solana ecosystem, and after it was listed on a decentralized exchange, he executed a rug pull and ran off with the funds.

The driver behind a 1,000x surge in 26 hours

Park promoted CATFI by publishing false bullish news, buying followers, and other methods, and used multiple wallets to spread out holdings and conduct cyclical trades to obscure the fact that the tokens were under his control.

Within 26 hours of issuance, the CATFI price surged 1,001 times. About 6,000 investors bought in; after the main suspect dumped the tokens and they hit zero, 256 investors lost about 900 million won (about $586,000). Prosecutors said the group used about 10 million won (about $6,500) in criminal funds to generate about 400 million won in illegal profits.

This is the first case in Korea’s legal history in which 98% of the tokens on Pump.Fun have been classified as Rug Pulls or scams.

From CEX to DEX, Korea’s regulatory reach extends

This case is the first enforcement action by South Korea against criminal conduct on DEX under the Virtual Asset User Protection Act, which took effect in July 2024. Previously, in January 2025, Korea handled its first centralized exchange price manipulation case under the same law. From CEX to DEX, the prosecutors’ jurisdiction is expanding.

The prosecutors said they will “resolutely respond to conduct that disrupts the digital asset market and undermines public trust.” This case could become a key precedent in Korea for handling meme-coin fraud, social-media promotion, and DEX trading under the virtual asset law. Korea has also continued to strengthen regulation recently, including requiring financial influencers to disclose their holdings and paid promotional information.

Frequently Asked Questions

Why is the CATFI case in Korea important?

This is the first time South Korea has brought a prosecution under the Virtual Asset User Protection Act for Rug Pull conduct on a decentralized exchange (DEX). It marks a regulatory shift extending from centralized exchanges to DEX and may become a key precedent for handling meme-coin scams.

What scam methods were used with the CATFI token?

After the main suspect created CATFI on Pump.Fun, they promoted it with false bullish news and by buying followers, and they used multiple wallets for cyclical trading to conceal control. After the token surged 1,001 times within 26 hours, it collapsed; 256 investors lost about 900 million won.