South Korea has taken its first action against a DEX fraud case under the Virtual Assets User Protection Act, involving the CATFI project.

CoinFeed reported on May 27 that, according to Crypto.news, the Joint Investigation Department for Virtual Asset Crimes of the Seoul Southern District Prosecutors' Office in South Korea arrested and indicted two main suspects involved in the Solana Meme coin CATFI on suspicion of market manipulation. One other person was indicted without detention, and the two were charged with aiding and abetting the main suspect's escape. This marks the first time South Korea has arrested and indicted individuals under the Virtual Asset User Protection Act for a "Rug Pull" scam on a decentralized exchange (DEX). Prosecutors stated that the main suspect, Park, impersonated the influencer "Eth Father" on the X platform, recommending investors to purchase CATFI as an unrelated third party. He also managed the project's social media accounts, manipulating follower counts and disseminating false positive news. The group also distributed CATFI across multiple wallets, using cyclical trading to conceal the fact that the issuer controlled the token.