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Gemholic is on the Agenda with Rug Pull Allegations Following the Incident Last Year

Rug Pull

Gemholic, the crypto project that accidentally locked 921 ETH in a smart contract on the ZkSync network last year, is facing rug pull charges after it unexpectedly moved its recently recovered funds. These accusations were strengthened by the fact that the project’s social media accounts appeared to have been deleted and the recovered funds were moved to Ethereum following the ZkSync network upgrade.

Gemholic, the team behind the GemSwap decentralized exchange on the Ethereum Layer 2 network ZkSync, faced rug pull accusations after locked funds were unlocked with the ZkSync network upgrade, and their social media assets appeared to have been deleted. In April 2023, The Block’s research director, Eden Au, was the first to notice that 921 ETH collected by Gemholic had been accidentally locked due to a technical difference between ZkSync’s Era network and the Ethereum mainnet.

ZkSync developers reported at that time that they had found a solution to unlock funds. These funds, which were worth approximately $1.7 million at the time, reached a value of $3.4 million with the increase in the Ethereum price. The funds appear to have opened yesterday after ZkSync recently implemented the v24 upgrade on its mainnet.

Gemholic had initially promised to continue the project once funds became available. Last April, the project wrote on the now inaccessible .”

However, after the funds were recovered, X users noticed that the funds had been moved to the Ethereum mainnet, and Gemholic’s X and Telegram accounts suddenly became inaccessible, presumably deleted by the Gemholic team. X user Nahnah64 compiled a list of wallet addresses reflecting $3.4 million in recently opened funds.

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“Today, $3.5 million was stolen by Gemholic. They made false promises to their investors for a year and then pulled the rug when the funds opened,” wrote X user NSerec, founder of zkMarkets, on the X platform.

Gemholic had received know-your-consumer (KYC) and smart contract verification from blockchain security provider SolidProof, and the project was issued a certificate of compliance.


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