The cryptocurrency community is reeling from concerns surrounding a suspected rug pull incident involving the Gemholic project and the zkSync network.

Speculation abounds as community members endeavor to trace the address of the Gemholic contract creator, purportedly funded by Binance.

Allegations surfaced on the X social platform, with users recounting their experiences and raising red flags about Gemholic's actions. NSerec, the founder of Zkmarkets, confirmed that Gemholic's actions resulted in a staggering loss of $3.5 million.

In an X post, NSerec unveiled a distressing narrative, alleging that Gemholic had deceived investors for a year by offering false assurances of refunds. However, once funds became accessible, the team executed what appeared to be a rug pull, leaving investors in the lurch. NSerec divulged that the contract creator's address was allegedly funded by Binance, prompting calls from the community for insights on how Binance might intervene.

Despite undergoing a Know Your Customer (KYC) verification process with SolidProof, a verification service, no public statement has been issued regarding the situation. NSerec suspects that the silence may be an attempt to quell fear, uncertainty, and doubt (FUD) among investors.

Expressing frustration with SolidProof's perceived inaction, NSerec argued that the KYC provider must either acknowledge shortcomings in verifying the individuals involved or report the perpetrators to authorities and disclose the details to the public. Failure to address the issue casts doubt on SolidProof's credibility, leading NSerec to suggest that affected individuals hold the company accountable. He even proposed renaming SolidProof to "UselessProof" if they fail to take decisive action.

The debacle stemmed from a mistake in the sales contract, leading to funds being locked in the Gemholic project for over a year. Matter Labs, the team behind zkSync, identified the issue and rectified it through the v24 upgrade on June 7. Subsequently, Gemholic project funds, totaling 921 Ether (ETH), were withdrawn from the contract and transferred to the Ethereum blockchain. Notably, Gemholic's X account and Telegram messages were deleted at the time of publication, adding to the mystery surrounding the incident.

As the fallout from the alleged rug pull continues to unfold, the cryptocurrency community awaits clarity and accountability from all parties involved, underscoring the importance of transparency and diligence in navigating the ever-evolving landscape of digital assets.