The crypto world is abuzz with concern after a suspected rug-pull involving the Gemholic project and the zkSync network. Users impacted by the alleged Gemholic scam have turned to X to shed light on the situation. NSerec, the founder of Zkmarkets, confirmed that Gemholic made off with $3.5 million.
In a post on X, NSerec revealed that Gemholic had duped investors for a year by falsely promising refunds. When the funds were finally accessible, the team carried out what appeared to be a rug-pull. NSerec disclosed that the contract creator’s address was allegedly funded by Binance and called on community members with information on how Binance could be contacted for assistance.
Despite completing Know Your Customer (KYC) verification with SolidProof, the verification service has remained silent on the matter. NSerec suspects that this silence is an attempt to prevent fear, uncertainty, and doubt (FUD) from spreading among investors. According to NSerec, if SolidProof continues to ignore the issue, their services should not be trusted.
In related news, StarkWare has launched a $1M research fund for ZK Bitcoin scaling. NSerec urged those affected by the Gemholic scam to hold SolidProof accountable if they fail to address the situation. He even suggested that if no action is taken, they should be renamed “UselessProof” instead of “SolidProof.”
The zkSync project Gemholic had its funds locked for over a year due to an error in the sales contract. Matter Labs, the team behind Ethereum layer-2 scaling solution zkSync, identified the issue in the GemstoneIDO smart contract, part of the GemholicECO ecosystem. On June 7, zkSync completed its v24 upgrade, resolving the issue and allowing access to the locked funds.
Following the upgrade, the Gemholic project withdrew 921 Ether (ETH) from the contract and transferred it to the Ethereum blockchain. At the time of publication, Gemholic’s X account and all Telegram messages had been deleted.
In a magazine feature, Beyond Crypto, the potential of zero-knowledge proofs from voting to finance was highlighted.