- The altcoin community is raising alarms over a potentially fraudulent rugpull event involving the Gemholic project and the zkSync network.
- Community members are currently trying to identify the creator’s address of the Gemholic contract, which is believed to be funded by Binance.
- Concerns have been amplified through various reports and social media posts, including eye-witness accounts and blockchain analysts.
Is the Gemholic Project Another Rugpull Scandal in the Crypto Space? Explore the Details and Expert Insights.
Allegations Against the Altcoin Team
Users allegedly affected by the Gemholic scam have taken to social media platforms like X to spread awareness. According to NSerec, founder of zkmarkets, the Gemholic team has allegedly siphoned off $3.5 million. He claims that the project deceived investors for a year by promising refunds while the funds remained locked. However, when the funds were finally accessible, the team executed what appears to be a rugpull. NSerec revealed that the contract creator’s address was supposedly funded by Binance, raising further suspicions. He also sought community insights on how Binance might assist in this matter.
Silence of the KYC Provider
Despite passing a Know Your Customer (KYC) check with SolidProof, the verification service has remained silent on the issue. NSerec suggests this silence might be an attempt to prevent panic and uncertainty (FUD) among investors. He emphasizes that either SolidProof failed to execute a thorough vetting process or they are keeping quiet to avoid accountability. NSerec suggests that impacted individuals should hold SolidProof accountable and even hinted at the community renaming the service to “UselessProof” if it continues to ignore the situation.
The zkSync project Gemholic’s funds had been locked due to a sales contract error for over a year. The recent zkSync v24 upgrade enabled the recovery of these funds. Shortly thereafter, the Gemholic team transferred 921 ETH from the contract to an external address, raising suspicions of a rugpull.
Background of the Controversial Incident
For over a year, the Gemholic project’s funds were locked due to an error in the sales contract within the zkSync ecosystem. According to Matter Labs, the team behind the Ethereum layer-2 scaling solution zkSync, the problem was identified in the GemstoneIDO smart contract. The root cause was linked to the .transfer() function managed by the Gemholic ECO system. On June 7, zkSync completed the necessary v24 upgrade to resolve the issue, thereby unlocking the funds. Following this upgrade, the Gemholic team withdrew 921 ETH and transferred it to Ethereum’s blockchain. Notably, Gemholic’s X account and all Telegram messages have since been deleted.
Conclusion
The unfolding saga of the Gemholic project raises significant concerns within the crypto community, highlighting the need for stringent oversight and accountability. Investors must remain vigilant and well-informed to navigate the volatile crypto landscape. Future updates are anticipated as the community works to uncover further details.
