South Korea sentences perpetrator in the first fraud case under the Virtual Asset User Protection Act: Meme coin “Rug Pull” ringleader receives 4-year prison term

<div class="w-full whitespace-pre-line DetailContent_detail__pRaS_ mt-[16px> <p>Odaily reported that South Korea announced today its first verdict under the fraudulent unfair trading clause of the Virtual Asset User Protection Act. The Seoul Southern District Court sentenced crypto influencer Park, who orchestrated a Meme coin "Rug Pull" scam, to four years in prison. Two other accomplices received sentences of two years and six months, and three years in prison with a five-year suspended sentence, respectively.

Prosecutors pointed out that the defendants issued the Meme coin via Pump.fun and spread false positive information such as "lock-up" through social media, which drove the coin price up approximately 1001-fold within 26 hours. This attracted around 6,000 investors to buy in, after which the group sold off and cashed out. The group invested only about 10 million Korean won in costs for the crime, illegally profiting around 400 million Korean won. (Edaily)