The altcoin community is concerned about a suspected rugpull incident involving the Gemholic project and the zkSync network. Community members are currently trying to find the address of the creator of the Gemholic contract, which is thought to be funded by Binance.
Did the altcoin team perform a rugpull?
Several users allegedly affected by the Gemholic scam contacted X to raise awareness. NSerec, founder of Zkmarkets, confirmed that Gemholic stole $3.5 million. NSerec alleged that Gemholic deceived its investors for a year by promising refunds. The funds locked in the treasury have finally been unlocked. However, the team performed a rugpull. NSerec revealed that the contract creator’s address was supposedly funded by Binance. He also asked community members who had insights on how Binance could help reach them.
Despite completing Know Your Customer (KYC) verification with SolidProof, the verification service did not publicly disclose the situation. NSerec believes this silence is likely an effort to prevent fear, uncertainty and doubt (FUD) from spreading among investors. Meanwhile, crypto journalist Wu Blockchain shared the development as follows:
Funds for zkSync project Gemholic were locked more than a year ago due to an error in the sales contract. Yesterday, zkSync completed its v24 upgrade, enabling the recovery of locked funds. The Gemholic project withdrew 921 ETH from the contract and transferred it to Ethereum, and RugPull is suspected.
KYC provider remains silent!
According to NSerec, a KYC provider must either admit that it did not do a good job of checking the people involved, or report the scammers to the authorities and tell the public what happened. He also stated that if SolidProof continues to ignore this issue, their services should not be trusted. The Zkmarkets founder said that if SolidProof does not deal with the Gemholic scam, those affected should hold SolidProof accountable. He even suggested that if they don’t take action, people should start calling them “UselessProof” instead of “SolidProof.”
Background of the interesting event
The funds of the zkSync project Gemholic were locked for over a year due to an error in the sales contract. cryptokoin.comAs you follow from , Matter Labs, the team behind the Ethereum layer-2 scaling solution zkSync, found that the issue was caused by the .transfer() function in the GemstoneIDO smart contract, which is part of a project run by the GemholicECO ecosystem. On June 7, zkSync completed the v24 upgrade, which resolved the issue and allowed access to locked funds. Following the upgrade, the Gemholic project withdrew 921 ETH from the contract and transferred it to the Ethereum blockchain. Meanwhile, Gemholic’s X account and all Telegram messages have already been deleted.
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