A zkSync-based project, Gemholic, is suspected of conducting a rug pull after suspicious activities on Saturday. The team behind the now-defunct decentralized exchange, GemSwap, moved previously inaccessible investor funds, raising alarm in the crypto community.

In April 2023, Gemholic had accidentally locked 921 ETH (worth $1.7 million at the time) in its zkSync smart contract, GemstoneIDO, due to an error. zkSync developers confirmed the funds were safe and developed a fix to unlock the contract. On June 7, 2024, following a zkSync network upgrade, Gemholic accessed the 921 ETH, now valued at $3.5 million, and transferred the funds to an unrelated Ethereum wallet.

Subsequently, Gemholic vanished from social media, disabling its Telegram channels and X accounts, prompting accusations of a rug pull after a year of promises to investors. The project had assured a return and refunds once the funds were recovered.

Additionally, Web3 developer @Nserec criticized blockchain security firm SolidProof for its silence regarding Gemholic's alleged rug pull, despite having conducted KYC verification for the project. The developer urged SolidProof to issue a statement or report the matter to authorities and advised affected investors to contact Binance, as Gemholic's creator was initially funded by the exchange.