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ZkSync’s Gemholic Suspected of $3.5M Rug Pull

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ZkSync’s Gemholic Suspected of $3.5M Rug Pull

The cryptocurrency community is in turmoil after a suspected rug-pull incident linked to the Gemholic project and zkSync network. Numerous users who feel they have been scammed by Gemholic have taken to social media platforms like X to alert others and call for action. According to NSerec, the founder of Zkmarkets, the project duped investors out of a whopping $3.5 million. In a recent post, he revealed that Gemholic had misled its investors for over a year with false promises of refunds. When the opportunity finally arose to unlock the funds, the project team apparently pulled off what looks like a rug-pull, an exit scam where creators vanish with the investors’ money.

NSerec further explained that the contract creator’s address had been funded via Binance. He called on community members with any insights or knowledge to reach out to Binance for assistance in holding those responsible accountable. The plea was driven by the hope that such information might lead to some resolution for the affected investors.

Interestingly, despite having completed the Know Your Customer (KYC) verification process with SolidProof, the verification service has remained silent on this issue. NSerec speculated that SolidProof might be trying to contain fear, uncertainty, and doubt (FUD) among investors by not openly addressing the scam. He stressed that SolidProof has a duty to come clean either by admitting lapses in their verification process or by reporting the fraudsters to law enforcement and making the situation public.

The Zkmarkets founder argued that if SolidProof ignores its responsibilities in this matter, the community should not trust their verification services anymore. He suggested a rather contemptuous alternative name for them, “UselessProof,” if they fail to take any action. His statements reflect the growing frustration and demand for accountability within the cryptocurrency community.

To understand how this calamity unfolded, we need to look back at the events leading up to the incident. The zkSync project that Gemholic was involved with encountered a major setback when the funds were locked due to an error in the sales contract. The development team at Matter Labs, who work on the Ethereum layer-2 scaling solution zkSync, traced this problem to the .transfer() function in the smart contract associated with the GemstoneIDO, a part of the GemholicECO ecosystem.

This locking issue persisted for over a year, but on June 7, zkSync completed its v24 upgrade, which resolved the problem. This upgrade enabled access to the previously locked funds. Shortly after this update, the Gemholic project withdrew 921 Ether (ETH) from the contract and transferred it onto the Ethereum blockchain.

What followed was alarming: Gemholic’s account on X and all related messages on their Telegram group mysteriously disappeared. This move raised serious red flags and convinced many that the project had performed a rug-pull exit scam.

The cryptocurrency community is left grappling with the aftermath of this alleged scam. There is a shared urgency to bring those responsible to justice and to ensure that such incidents are mitigated in the future. Accountability from verification services like SolidProof is now seen as critically important to restore trust and security within the digital currency world.

The unfolding drama has not only impacted the investors but has also triggered broader discussions about the need for stringent oversight and fool-proof verification processes in the crypto space. As the investigation continues, it remains to be seen how this incident will shape the policies and trust mechanisms within the cryptocurrency industry moving forward.

38 thoughts on “ZkSync’s Gemholic Suspected of $3.5M Rug Pull

  1. This is why verification services like SolidProof are so important. We need them to act now!

  2. Hats off to NSerec for holding SolidProof accountable. Integrity in the crypto space is non-negotiable.

  3. Inspiring to see community accountability action. SolidProof needs to respond!

  4. Gemholic might as well have just spit in my face. Thats how disrespectful and deceitful this whole situation is.

  5. SolidProof needs to address this ASAP! We can’t afford to lose trust in our verification services.

  6. Devastated for everyone affected by the Gemholic scam. We need solid verification processes and more oversight!

  7. The crypto world needs more people like NSerec pushing for justice. We’re standing with the victims.

  8. The worst part is that this went on for over a year and nobody caught on. What kind of oversight do we have in this space?

  9. This just makes me want to quit crypto altogether. How can we trust any project now? 😭

  10. Seeing the community come together in times like this is critical. Let’s hope justice is served soon! ⚖️

  11. Cheering for community leaders like NSerec who fight for what’s right! This must lead to better verification standards.

  12. Incredibly sad to hear about the Gemholic situation. Thanks NSerec for shining a light on the issue. Let’s hope for some resolution soon.

  13. The crypto community deserves better than this. We need to clean house and hold all these bad actors accountable.

  14. Honestly, I’m losing faith in the whole crypto community. If even KYC-verified projects can rug-pull us, whats the point?

  15. Wow, $3.5 million lost! The crypto space needs serious reform. Good to see NSerec taking a stand!

  16. Heart goes out to all the investors scammed by Gemholic. Thanks to NSerec for pushing for justice! 💓

  17. Heartbreaking to see so many people get scammed. Let’s hope Binance and SolidProof take the appropriate actions to resolve this.

  18. NSerec is right; if SolidProof doesnt act, theyre complicit in this mess. They need to own up to their role in verifying these scammers.

  19. Where is SolidProof? Their silence is deafening and unacceptable. If they can’t protect us, they should shut down.

  20. This is a wake-up call for the entire crypto community. We must demand transparency and accountability!

  21. So we waited over a year for them to unlock funds only to get scammed in the end? This is just beyond words.

  22. This is absolutely outrageous! 😤 How can such a thing be allowed to happen? Crooks like these need to be punished severely.

  23. Thank goodness for voices like NSerec in the community. 👊 We need more transparency and trustworthy verification services!

  24. This incident is a wake-up call. Trust but verify isnt enough when verification services themselves are failing us.

  25. ZkSync might have fixed their issues, but Gemholic’s betrayal is a stark reminder of how risky investing in crypto can be.

  26. This event highlights the need for more robust verification systems. Keep pushing, NSerec!

  27. Kudos to NSerec for calling out SolidProof. Verification services need to be held accountable!

  28. SolidProof needs to come forward and address their involvement. Their silence is only making things worse. 😡

  29. Such a distressing story! 😔 It’s essential for platforms like Binance and SolidProof to step up and ensure justice is served for the deceived investors. 💪

  30. Wow, this is shocking! Kudos to NSerec for pushing for accountability. We need more transparency and better security in the crypto world.

  31. Binance needs to step up and assist with this. We need all the help we can get to bring these scammers to justice. 💼

  32. Props to NSerec for not letting this slide! 👏 The crypto space needs more accountability to protect its investors. 🚀

  33. The fact that SolidProof is silent is concerning. They owe the community answers!

  34. The investors deserve answers and justice. Great to see NSerec advocating for the community!

  35. I feel completely betrayed by the crypto community. How many more scams like this are waiting to happen?

  36. The community MUST unite to prevent more rug-pulls! Time for Binance and SolidProof to act!

  37. Praying the affected investors get some justice. Proud of NSerec for standing up for the community. 🙏

  38. Gemholic took advantage of us during a time of trust and openness. I don’t know if I can ever invest again.

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