Suspected $3.5 million rug pull for ZkSync’s Gemholic project

  • The address of the inventor of the Gemholic contract, which is purportedly supported by Binance, is currently being sought after by community members.

The potential rug-pull incident involving the Gemholic project and the zkSync network has raised concerns within the cryptocurrency community.

A number of people impacted by the purported Gemholic scam have used X to spread the word. The creator of Zkmarkets, NSerec, verified that Gemholic had stolen $3.5 million.

NSerec asserted in the X post that Gemholic had misled its investors for a year by making fictitious refund promises. When the money was eventually freed, the group pulled off what seemed to be a rug pull. 

NSerec said that the address of the contract developer was purportedly paid by Binance and requested that community members get in touch with them if they have any ideas about how Binance may help.

KYC provider quiet

SolidProof completed Know Your Customer (KYC) verification, but the verification provider hasn’t made a public statement about it. According to NSerec, the quiet may be an attempt to stop investors’ fear, uncertainty, and doubt (FUD) from growing.

As per NSerec, a KYC provider is required to either acknowledge their mistake in not thoroughly verifying the individuals involved or notify the public about the incident and report the fraudulent actors to the authorities. SolidProof’s service shouldn’t be relied upon if they continue to overlook this issue.

According to the founder of Zkmarkets, SolidProof should be held accountable by the victims of the Gemholic fraud if it fails to address it. He went so far as to propose that in lieu of calling them “SolidProof,” people should start referring to them as “UselessProof” if they don’t act.


Funds for the zkSync project Gemholic were blocked for more than a year due to an error in the sales agreement. The problem was found to be related to the.transfer() function in the GemstoneIDO smart contract, which is a component of a project managed by the GemholicECO ecosystem. 

Matter Labs is the firm behind the Ethereum layer-2 scalability solution zkSync.

After zkSync finished its v24 upgrade on June 7, the problem was resolved and access to the frozen monies was made possible.

After the update, 921 Ether (ETH) was removed from the contract and moved to the Ethereum network by the Gemholic project. Gemholic’s Telegram communications and X account had been removed.

Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.

Author: Puskar Pande

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