The crypto community is in uproar over a suspected rug-pull involving the Gemholic project and the zkSync network. Users affected by the alleged scam have taken to social media to raise awareness. NSerec, the founder of Zkmarkets, confirmed that Gemholic made off with $3.5 million.
In a post on X, NSerec revealed that Gemholic had deceived investors for a year by falsely promising refunds. When the funds were finally unlocked, the team executed a rug pull. NSerec also mentioned that the contract creator’s address was allegedly funded by Binance and called on community members with insights on how Binance could help in reaching out to them.
Despite completing KYC verification with SolidProof, the verification service has remained silent on the matter. NSerec believes that this silence is an attempt to prevent FUD among investors. He stated that a KYC provider should either admit fault in checking the people involved or report the fraudsters to authorities and inform the public. If SolidProof continues to ignore the issue, their service should not be trusted.
NSerec suggested that if SolidProof does not address the Gemholic scam, those affected should hold the provider accountable. He even proposed referring to them as “UselessProof” instead of “SolidProof” if they fail to take action.
The Gemholic project, part of the zkSync ecosystem, had its funds locked for over a year due to a mistake in the sales contract. Matter Labs, the team behind zkSync, identified the issue and fixed it with the v24 upgrade on June 7, allowing the locked funds to be accessed. Following the upgrade, Gemholic withdrew 921 ETH from the contract and transferred it to the Ethereum blockchain. Gemholic’s social media accounts had been deleted at the time of publication.