South Korea's first anti-DEX fraud case under the Virtual Asset User Protection Act involves the CATFI project

According to Crypto.news, the Joint Investigation Department of Virtual Asset Crimes of the Southern District Prosecutor's Office in Seoul, South Korea, arrested and charged two main criminals related to the SolanaMeme coin CATFI on suspicion of market manipulation. Another person was charged without detention. The two were charged for assisting the main criminals in escaping. This is the first time that South Korea has arrested and prosecuted a decentralized exchange (DEX)"RugPull" scam under the Virtual Asset User Protection Act. Prosecutors claimed that the main offender Park pretended to be an Internet celebrity "EthFather" on platform X and recommended investors to purchase CATFI as an unrelated third party. He also managed the project's social media accounts, manipulated the number of fans and released false good news. The gang also dispersed CATFI into multiple wallets, using round-robin transactions to conceal the fact that the issuer controlled the tokens. The price of CATFI soared 1001 times within 26 hours of its issuance, and about 6000 investors bought it. Subsequently, 256 investors lost about 90 million won (about 586,000 US dollars). The criminal gang used approximately 10 million won in funds and made a profit of approximately 400 million won (approximately 260,000 US dollars).