A Meme Token Rug Pull Goes to Court

In South Korea, the rug-pull case involving the CatFi meme token has been sent to court. The token's creators are accused of attracting a large number of traders to CatFi on the decentralized exchange Raydium, encouraging them to buy the token, and then withdrawing liquidity from the trading pair. In simple terms, they allegedly stopped buying the tokens back from those who had bought them earlier.

Honestly, based on the way the media describes the case, I do not see anything obviously criminal in the defendants' actions. In 2024-2025, millions of meme tokens entered the market in exactly this way. Every creator tried to attract as much attention as possible to their own project, so that other people would buy their tokens. And none of those creators planned to buy the tokens back later at a higher price. Why would they?

However, the people going to trial are not only the token's creators, but also individuals who allegedly helped one of them hide from law enforcement. That suggests the creator who was hiding may have considered himself a criminal too. So did they actually promise the people they attracted to the token that they would later buy the tokens back?

If so, then the charges may indeed be justified. But in general, it is worth remembering that in the crypto market, no one usually guarantees that you will be able to sell the token you bought at any price at all. At rabbit.io, we promise to exchange your assets at the best rate we can find on the market. But that is something very different. If there is no market demand for your token, you cannot get anything for it.

Even Bitcoin is not something anyone is obliged to accept or buy from you. Everyone who does so does it voluntarily. And those who guarantee liquidity may eventually find themselves in the dock.