08 Jun

The cryptocurrency community is in a tizzy after a project on the ZkSync network, Gemholic, is suspected of a rug pull – a scheme where developers abandon a project after raising funds from investors.

Allegations of Deception:

Reports allege that Gemholic deceived investors for over a year. The project's funds were locked due to a coding error in the sales contract. However, after a year of promises of refunds, the team allegedly unlocked the funds and vanished with an estimated $3.5 million.

Community Reacts:

NS erec, founder of Zkmarkets, took to social media platform X to raise awareness, claiming Gemholic stole the funds. The incident has sparked outrage within the ZkSync community, with many calling for accountability.

Impact on ZkSync:

While the alleged rug pull is isolated to the Gemholic project, it raises concerns about project vetting and security on the ZkSync network. Matter Labs, the team behind ZkSync, has not yet commented on the situation.

June 2024, Cryptoniteuae 

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