Crypto project Gemholic under suspicion for executing a $3.5 million rug pull, Telegram and X accounts have all been deleted

The crypto project Gemholic, which operates on the zkSync network, is currently under suspicion for a $3.5 million rug pull.

Rug pull is a scam, it happens when the project suddenly shutdown and taking investor’s assets with them.

0xMorgosh on X: "Today, $3.5 million was stolen by Gemholic, who for an entire year falsely promised refunds to its investors, only to execute a rug pull after the funds were finaly unlocked. The team has supposedly completed a KYC verification by @SolidProof_io, which has yet to address the" 

On June 7, Gemholic’s online presence, including its social media Gemholic’s X and Telegram accounts have been deleted.

This occurred after multiple transactions drained the project’s smart contract funds.

Gemholic had previously lost access to 921 ETH due to a smart contract bug and had promised refunds to investors if the funds were recovered.

After the recent zkSync v24 upgrade, which fixed the smart contract issue, the locked funds became accessible.

Instead of refunding investors, the Gemholic team withdrew the 921 ETH and transferred it to the Ethereum blockchain.

The KYC provider SolidProof, which had verified Gemholic, has not made a public statement regarding the incident.

The community is alarmed by this development, and there are ongoing discussions about the role of Binance in funding the contract creator’s address.