Gemholic Accused of Disappearing with Unlocked Funds

A crypto project called Gemholic faces accusations of stealing investor funds after moving a large sum of money and vanishing from social media.
Gemholic ran a decentralized exchange (DEX) named GemSwap on the ZkSync network, a layer-2 scaling solution for Ethereum. In April 2023, an expert discovered that Gemholic accidentally locked 921 ETH (around $1.7 million at the time) due to a technicality.
ZkSync developers promised a fix, and with the recent network upgrade, the funds (now worth $3.4 million) became accessible again. Gemholic reportedly assured investors they would resume operations and repay any excess funds.
However, after the upgrade, users noticed the recovered money transferred to the main Ethereum network. Alarmingly, Gemholic’s social media accounts on X (formerly Twitter) and Telegram were suddenly inaccessible, possibly deleted.
Community members suspect a “rug pull,” a scam where developers abandon a project after taking investor funds. One user, NSerec (founder of zkMarkets), accused Gemholic of stealing $3.5 million after a year of false promises.
SolidProof, a blockchain security firm that verified Gemholic’s smart contract, is yet to comment on the situation. ZkSync developers have also not been reached for a response.