South Korean prosecutors have initiated their first lawsuit under the Virtual Asset User Protection Act, targeting a rug pull scheme involving the memecoin CatFi on the Solana blockchain. The Seoul Southern District Prosecutors' Office charged five individuals who allegedly created CatFi on the Pump.fun platform in February 2025, then sold off their holdings after a brief price surge, leading to a collapse in value. The scheme reportedly affected 256 investors, resulting in losses of approximately 900 million Korean won ($600,000), while the suspects profited by over 400 million won ($267,000). This case marks the first application of South Korea's new law to prosecute cryptocurrency-related crimes in a decentralized trading context. The prosecution's move highlights the legal consequences for rug pull activities, which previously often went unpunished. Following the announcement, CatFi's market cap surged from $2,350 to $167,000, despite remaining significantly below its February 2025 peak. The case underscores the potential for price volatility in the Solana meme coin market amid legal scrutiny.