Woofun AI reports that South Korean prosecutors are seeking a 4.5-year prison sentence for the individual accused of orchestrating a rug pull involving the Solana-based memecoin CATFI. The investigation confirms that perpetrators issued the CATFI token on Pump.fun in early 2025, listed it on a decentralized exchange, and executed the exit scam after artificially inflating the asset's market value.

The token's price surged 1,001-fold within 26 hours of its launch, a trajectory that attracted approximately 6,000 investors to the project. This rapid appreciation masked the fraudulent intent behind the scheme, which ultimately collapsed when the operators withdrew liquidity.

The deeper driver of the loss was the coordinated manipulation of social media channels to fabricate demand.

The scheme resulted in 256 investors losing a total of 900 million won, equivalent to around $652,000, while the criminal group secured 400 million won in illicit profits.

Woofun AI data shows these gains were realized through fraudulent trading activities amplified by deceptive social media campaigns. The disparity between the total investor loss and the group's profit highlights the scale of capital destruction in this specific incident.

This case marks one of the more significant legal actions against memecoin fraud in South Korea, signaling intensified scrutiny of fraudulent token schemes. Authorities are treating the exploitation of retail investors through fake price action and social media manipulation with severe legal consequences. The use of Pump.fun has come under specific scrutiny as a primary vector for deploying such high-velocity frauds.

As the South Korean court prepares to rule on the sentencing, the outcome could fundamentally influence regulatory approaches and investor behavior in the memecoin space. This judicial response indicates a shift from passive observation to active prosecution of on-chain manipulation tactics. The precedent set here may redefine liability for platform facilitators in future digital asset cases.