South Korean prosecutors have arrested the creators of the Solana-based meme coin CatFi over allegations of a rug pull that caused around $599,000 in investor losses. The arrests mark the first application of the country's new Virtual Asset User Protection Act. The coin surged 6,000 percent following the detentions.
The arrests target individuals behind CatFi, a meme coin launched on the Pump.fun platform. Prosecutors allege the creators pulled liquidity from the project, leading to significant investor damages. This case represents the first time the Virtual Asset User Protection Act has been used in such an enforcement action.