PANews 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 CATFI scam on suspicion of market manipulation. Another person was indicted without detention, and the two were charged with aiding and abetting the escape of the main suspects. This marks the first time South Korea has arrested and indicted individuals under the Virtual Asset User Protection Act for a "Rug Pull" scam involving a decentralized exchange (DEX).

Prosecutors stated that the ringleader, 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 transactions to conceal the fact that the issuer controlled the token. Within 26 hours of its release, CATFI's price surged 1001 times, attracting approximately 6,000 investors. Subsequently, 256 investors lost approximately 90 million won (about US$586,000). The criminal group used approximately 10 million won to profit approximately 400 million won (about US$260,000).