An interesting development took place today on Gemholic, one of the zkSync projects.

All of the Gemholic developer team’s funds were locked and unavailable due to an error in the sales contract of the project approximately 1 year ago. In the development that took place yesterday, zkSync has successfully completed its new update, v24, and with this update, access to locked funds has been opened.

With access to the locked funds, Gemholic developers withdrew the 921 ETH locked in the contract and bridged it to the Ethereum network.

Due to the lack of any statement from the developer team and the withdrawal of the funds in question from the zkSync network, there is currently a huge suspicion of rugpull fraud in the Gemholic project in question.

The Gemholic zkSync network wallet currently no longer contains any assets.

Rugpull can be described as a type of exit scam that involves a team raising money from investors and the public by selling a token, quietly shutting down the project or suddenly disappearing, stealing the raised funds and leaving the “investors” (i.e. their victims) with worthless tokens.