South Korea indicts five in alleged meme coin rug pull

South Korean authorities have arrested and indicted five people accused of orchestrating a meme coin rug pull that allegedly cost investors approximately 900 million won ($600,000), in what prosecutors describe as the country's first criminal cryptocurrency fraud case.

According to investigators, the scheme centred on the CATFI meme token, which was launched on a decentralised exchange and promoted through a social media personality known as "Eth Father."

Prosecutors allege the influencer was not a real independent market commentator but a fabricated online persona controlled by the suspected ringleader, identified only by the surname Park.

Authorities claim the group accumulated CATFI tokens before aggressively promoting the project as a promising investment opportunity backed by a growing community of supporters.

After retail investors purchased the token and drove prices higher, prosecutors allege the suspects sold their holdings, triggering a sharp collapse in value and leaving investors with substantial losses.

Investigators estimate that 256 individuals were affected by the scheme and that the organisers generated approximately 400 million won ($260,000) in illicit profits through the operation.

The case comes as South Korea continues tightening oversight of digital assets through stricter regulatory measures, with authorities increasingly targeting market manipulation, investor protection failures and fraudulent cryptocurrency schemes.