Solana Meme Coin Surges 6,000% After Creators Arrested Over 'Rug Pull'
The charges against the CatFi creators mark the first time South Korean prosecutors have applied the new Virtual Asset User Protection Act.
By Ryan S. GladwinEdited by Stephen GravesMay 27, 2026May 27, 20263 min read
In brief
- South Korean prosecutors charged five over a "rug pull" on Solana meme coin launchpad Pump.fun, in the first use of the country's new Virtual Asset User Protection Act.
- The creators of meme token CatFi are accused of causing $600,000 in damages to 256 investors.
- Following the news, traders pumped the dormant CatFi token almost 6,000% in an attempt to "unrug" it, though it remains 96% below its February 2025 peak.
South Korean prosecutors have charged five people over allegedly orchestrating a "meme coin rug pull" on Pump.fun, causing 900 million WON ($600,000) in damage. In response to the news, the meme coin has pumped almost 6,000%, with a group of traders attempting to "unrug" the token.
According to the Seoul Southern District Prosecutors' Office, the five defendants created a token called CatFi on the Solana launchpad Pump.fun in February 2025. The meme coin quickly pumped to a market cap of $8.37 million, per DEX Screener, before crashing down to a measly $12,170—all within a matter of hours. This was the result of the defendant's "mass selling," the prosecutors say, which has been defined as a "rug pull."
The Prosecutors' Office calculated that 256 investors suffered damages worth 900 million WON ($600,000), with the defendants pocketing over 400 million WON ($267,000). The two individuals responsible for the social media promotion of the token have been arrested, while the remaining three, who controlled the technical side of the scheme and aided the other defendants' escape, have been charged but not arrested.
The landmark case marks the first time South Korea's new Virtual Asset User Protection Act has been applied to penalize an alleged rug pull, the translated press release states. It’s also the nation's first prosecution of a crypto crime executed on a decentralized exchange.
Speaking to Decrypt, Nick Vaiman, co-founder of blockchain data analytics firm Bubblemaps, called the charges a “good move by the Korean government.”
“There have always been community investigations on rug pulls, but they led nowhere because there were no real legal consequences," Vaiman said, adding that, "Now, with the law and real precedent, we hope to see more justice and fewer retail investors getting burned."
Phase 1. Rug
Phase 2. Prosecution
Phase 3. Unrugsolana:5AKD6AqoaHxuePTZUfSkiHM6gpCT4tJ6UMrNwDZGpump
— CatFi (@CatFi_Official) May 27, 2026
Ironically, meme coin traders loved hearing the news so much that they pumped the dead CatFi token from a market cap of $2,350 to its current value of around $167,000—a surge of almost 6,000% in less than a day. Before this surge, the token hadn't attracted a single buy since August 2025, per block explorer SolScan.
A new X account has been created for the token, with its creators claiming that they want to "unrug" the token. Any investors still holding from the all-time high set in February 2025 will be praying they succeed—despite its recent surge, CatFi remains down 96% from its peak.