Investigators say the group launched the token through Solana’s Pump.fun platform before artificially inflating the price through coordinated wallet activity and misleading promotions. CATFI reportedly surged more than 1,000x within just 26 hours before the operators dumped their holdings, leaving hundreds of investors with major losses.

Authorities estimate the scheme generated around $260,000 in illicit profits while causing roughly $650,000 in investor losses. The case is also one of the first major tests of South Korea’s new virtual asset protection law, which came into effect in 2024 to crack down on fraud and market manipulation in crypto markets.