The address of the Gemholic contract developer, who is purportedly supported by Binance, is currently being sought after by community members.
A potential rug pull incident involving the Gemholic project and the zkSync network has the cryptocurrency world abuzz. To spread awareness, a number of people impacted by the purported Gemholic fraud have turned to the social media site X. Gemholic stole $3.5 million, according to NSerec, the creator of Zkmarkets.
Gemholic had fooled investors for a year, according to NSerec’s X post, by making fraudulent promises of refunds. The group pulled off what seemed to be a rug pull once the money were eventually unlocked.
NSerec disclosed that the contract creator’s address was purportedly financed by Binance and invited community members to get in touch with them if they had any ideas about how Binance might help.
Even though SolidProof completed a Know Your Customer (KYC) check, the verification provider hasn’t made a public statement on the matter. According to NSerec, the quiet may be an attempt to stop investors’ feelings of fear, uncertainty, and doubt (FUD) from growing.
NSerec claims that a KYC provider has two options: either they have to acknowledge that they did not thoroughly verify the individuals involved, or they have to denounce the scammers to the police and inform the public of what transpired. SolidProof, a KYC provider, should no longer be trusted if they continue to overlook this issue.
According to the founder of Zkmarkets, SolidProof should be held accountable by the victims of the Gemholic fraud if it fails to address it. He went so far as to propose that in lieu of calling them “SolidProof,” people should start referring to them as “UselessProof” if they don’t act.
Funds for the zkSync project Gemholic were blocked for more than a year due to an error in the sales agreement. The problem was found to be related to the.transfer() function in the GemstoneIDO smart contract, which is a component of a project managed by the GemholicECO ecosystem. Matter Labs is the firm behind the Ethereum layer 2 scalability solution zkSync.
The problem was resolved and the funds that were locked could be retrieved on June 7th, when zkSync finished the v24 upgrade.
After the update, 921 Ether was removed from the contract and moved to the Ethereum network by the Gemholic project. At the time of publication, Gemholic’s Telegram communications and X account had been removed.