South Korean prosecutors have indicted five individuals in the country's first decentralized exchange (DEX) rug pull case under the new Virtual Asset User Protection Act. The Seoul Southern District Prosecutors’ Office announced charges against the group involved in the CATFI token scheme, a Solana-based meme token launched during the 2025 meme-coin surge. Two suspects were arrested for market manipulation, while three others face charges for obstructing justice and aiding the alleged ringleader, known as "EtherFather." The scheme involved manipulating CATFI's market activity by spreading holdings across multiple wallets and engaging in circular trading to create the illusion of organic demand. The token's price surged 1,001 times within 26 hours, attracting around 6,000 investors. Prosecutors report that 256 investors suffered losses totaling approximately 900 million won ($650,000). This case marks the first application of the Act's fraudulent trading provisions to DEX activity, signaling a significant legal precedent in South Korea's approach to crypto regulation.