Gemholic’s Disappearance Raises Concerns Over Investor Funds
In April 2023, Gemholic encountered a situation where 921 Ether (ETH) valued at $1.7 million became inadvertently locked in the GemstoneIDO zkSync smart contract due to a technical error in the transfer() function. Following a request for assistance from Gemholic, the team at zkSync assured the community that the funds remained safe and that they had devised a solution to unlock the affected contract.
Subsequently, on June 7, 2024, zkSync successfully implemented the v24 network upgrade on its mainnet, resolving the contract error and enabling Gemholic to access the previously inaccessible funds. However, rather than adhering to their commitment to resume project operations after recovering the locked funds, Gemholic stirred controversy by transferring the 921 ETH, now valued at $3.5 million, to an unaffiliated Ethereum wallet. Moreover, the project has now gone completely offline by disabling its Telegram channels and social media accounts, prompting allegations of executing a rug pull by betraying investor trust.
Web3 Developer Expresses Discontent with KYC Provider’s Response
In a separate development, a Web3 developer known by the handle @Nserec took to social media to criticize blockchain security firm SolidProof for its failure to address the alleged rug pull committed by Gemholic, a zkSync-based project, despite having conducted Know Your Customer (KYC) verifications for the platform. @Nserec expressed dissatisfaction with SolidProof’s prolonged silence, speculating that the lack of communication could be an attempt to prevent fear, uncertainty, and doubt (FUD) among stakeholders.
The developer emphasized the need for SolidProof to either acknowledge their failure publicly or escalate the matter to relevant legal entities along with an official statement. Additionally, @Nserec recommended that affected individuals who fell victim to Gemholic’s suspected rug pull should reach out to Binance, as the project’s initial funding was sourced from the popular exchange.
Hot Take: Gemholic Suspected of Executing Rug Pull
As a participant in the crypto community, it is crucial to remain vigilant and conduct thorough due diligence when engaging with blockchain projects and decentralized platforms. The recent events surrounding Gemholic serve as a stark reminder of the risks associated with investing in the volatile crypto space. It is imperative to scrutinize the credibility and transparency of projects, as well as the reputations of associated partners and service providers to mitigate potential risks of rug pulls and fraudulent activities.
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