South Korea Makes First Arrest in DEX Rug Pull Fraud Case

Published by

Nidhi Kolhapur

May 27, 2026

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South Korea prosecutors have made the country’s first arrest and prosecution tied to a decentralized exchange rug pull scheme. Authorities charged a group accused of manipulating the price of CATFI and earning roughly KRW 400 million ($260,000) in illegal profits. Investigators said the main suspect, identified as Park, allegedly posed online as crypto influencer “Eth Father” to falsely market the token before executing the rug pull. The scheme reportedly caused about KRW 900 million in losses for 256 investors. The case signals that regulators are increasing enforcement against fraud in decentralized crypto markets, even when activity occurs through DEX platforms.

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