South Korea don charge CatFi say dem do rugpull under Law wey protect virtual asset investors

South Korea prosecution don put charge for CatFi rugpull and dem talk say na di first crypto fraud case wey dem use Virtual Asset User Protection Act take pursue scam and unfair trading. Seoul Southern District Prosecutors’ Office talk say dem charge five people. Two main suspects don get detained, while three others dem indict without detention. Prosecutors dey claim say dem launch CatFi rugpull for Solana through Pump.fun early 2025, use am to attract buyers after listing, then abandon am once funds reach target. Authorities say the scam rely on fake promotion setup not just token mechanics. One accused person pretend to be an "independent crypto influencer" to push CatFi buys, another one handle official project messages, put fake follower numbers and announce "fake token lockup" to make am look stable. Prosecutors also talk about on-chain manipulation like spreading tokens across many wallets and wash trading to hide who control the supply. After launch CatFi price reportedly jump about 1,001x in 26 hours, around 6,000 investors buy. Prosecutors say 256 investors report losses about 900 million KRW (~$600k), while suspects allegedly make over 400 million KRW. For traders, CatFi rugpull case remind say regulatory enforcement fit cause short-term volatility spikes, and still show Solana meme-coin liquidity cycles get high risk. The new details about influencer-style promotion and wash trading fit make people more skeptical and reduce follow-up buying after similar launches.