Project in Giant Altcoin Network Lost with 921 ETH: Did They RugPull?

A cryptocurrency project on zkSync's network, which is expected to be released soon as an Ethereum layer-2 solution, was faced with RugPull allegations.

Gemholic, the team behind the decentralized exchange (DEX) GemSwap, which was previously on the zkSync (ZK) network, whose airdrop distribution was highly anticipated, faced rugpull allegations for carrying funds they could not access after an upgrade in the network.

In April last year, it was noticed that the 921 ETH collected by Gemholic was accidentally locked in ZkSync due to a technical difference between ZkSync's Era network and the Ethereum main network.

The zkSync team stated in a statement last year that they had developed a solution to release funds that are now worth more than $3.4 million but were worth $1.7 million at the time, in parallel with the price increase in Ethereum. The ETHs in question were released as of yesterday, following the recent v24 upgrade on zkSync's mainnet.

They said we will continue

Gemholic had promised to continue the project if funds were released by zkSync. Gemholic, who does not currently have an account on Twitter, made the following statements in his statement at the time:

We know that many people have lost their trust. But we still believe things can be fixed. We will initiate a soft launch for a project as soon as the contract is fixed. We will also refund any excess funds.

Both Gemholic's Twitter and Telegram account were deactivated following the recovery of the funds. The company moved the funds to the Ethereum mainnet.

While it was claimed on social media that the funds in question were stolen by the company, it was claimed that Gemholic defrauded investors by promising refunds.