Cryptocurrency project developers found guilty of stealing more than $ 3 million in customer funds

The team of the Gemholic cryptocurrency project was suspected of implementing a liquidity rug pull scheme and stealing 921 Ethereum tokens worth $ 3.5 million from investors. The coins remained blocked for over a year.

Gemholic faced a serious operational failure back in April 2023. Due to an error in the zkSync smart contract, GemstoneIDO, 921 ETH were blocked. The value of the assets at the time was $ 1.7 million. The Gemholic team turned to zkSync technical specialists for help, who confirmed the safety of the funds and promised to fix the error.

on June 7, 2024, the zkSync team released the v24 update, which resolved the smart contract issue, and the Gemholic team gained access to the blocked ETHs. The value of the coins has now increased to $ 3.5 million. Shortly after the crypto assets were unfrozen, the company transferred them to its own wallet and deleted its accounts on all social media.

The founder of Zkmarkets under the pseudonym NSerec criticized the blockchain security specialists of SolidProof. Gemholic conducted the Know Your Customer (KYC) procedure through SolidProof’s service, so the KYC provider’s silence can be considered an attempt to prevent the spread of FUD among investors, the crypto enthusiast claims. NSerec demands that SolidProof publicly clarify the situation by admitting incompetence or reporting fraud to law enforcement.