On Sunday, June 15, 2025, the ZKJ token from the popular crypto project Polyhedra Network crashed 82%. While some members of the crypto community accuse the team of a ZKJ rug pull, others believe it looked like a Polyhedra Network scam from the start.
Here’s what happened to ZKJ, and how the world’s largest crypto exchange, Binance, became involved in the controversy.
ZKJ Price Collapse
On June 15, 2025, the ZKJ token of Polyhedra Network fell 82% within just a few hours. Attempts at recovery failed the following day. At the time of writing, ZKJ price is $0.3542 — a sharp decline from $4.01 in April 2024.
ZKJ Price Chart. Source: CoinGecko
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Many in the crypto community believe this was a textbook rug pull in crypto — a scheme where developers hype a project and then drain its liquidity at peak value.
Just before the collapse, six wallets, allegedly linked to the team, sold 5.23 million ZKJ tokens for $9.66 million — behavior typical of a crypto rug pull.
- 0x6aD390b069316ca0877a039AccDC5e02beDe2Ebb
- 0x0781325b3688714065b15C8d9fC0d4827628bdE7
- 0xef78554c8384ad94e874D2b27A21085C45Dfb456
- 0xb7Ba3Cf568224457814254C826d7104a92169b3E
- 0x1A29375eE09B38AFAa23BeD65f30C85230E27599
- 0xBdc0f711Bc1eB7C20feD017eA521228cEA8A9912
The ZKJ liquidity dump appears to have been triggered by activity involving another token — KOGE. The two were traded in shared liquidity pools. The crash started when liquidity was suddenly withdrawn from the KOGE/USDT pool. Whales sold ZKJ tokens via the KOGE/ZKJ pair, flooding the ZKJ/USDT pool and devaluing ZKJ. The resulting liquidation cascade reached nearly $100 million at its peak.
ZKJ Liquidations. Source: CoinGlass
Investors also noticed that both KOGE and ZKJ cryptocurrency were traded in pools associated with Binance’s Alpha Points program, deepening concerns about ties between Binance and ZKJ.
What Is Polyhedra Network
Polyhedra Network is a blockchain infrastructure project focused on scalability, privacy, and interoperability using zero-knowledge (ZK) technologies. Its mission is to simplify and secure data and asset exchange across different blockchains.
The project attracted backing from several prominent platforms and investors.
Backers of Polyhedra Network. Source: Official site
Binance’s Role Under Scrutiny
Among Polyhedra Network’s supporters is Binance LABS, the venture arm of the leading crypto exchange. Inclusion in Binance’s Alpha program indicated the platform saw potential in the token. Like it was in ZKJ case.
For many, that was more than enough reason to invest — and now, some claim Binance promotes scam projects due to insufficient due diligence. Those affected by the crypto fraud are demanding accountability. These accusations against Binance have sparked widespread discussion.
Some users are speculating that the ZKJ collapse could signal the end of the Alpha Points program altogether.
Developer Response
The Polyhedra team acknowledged the situation and promised to investigate. They initially pointed to suspicious on-chain activity as a possible cause of the crash, but insisted the project remains active and under development.
However, users on X highlighted that this activity seems tied to wallets allegedly owned by the team — a detail that suggests a coordinated crypto rug pull. Critics argue that such vague responses do not inspire confidence in recovery.
Community Reactions
Industry observers believe the ZKJ rug pull could have been anticipated. The project’s early promises to investors were considered unusually generous — often a sign of risky ventures.
Several investors lost money, with some reporting the loss of all their savings.
How Not to Fall for a Rug Pull
The ZKJ case serves as a powerful reminder to follow best practices for crypto investment safety. Here’s how to avoid a rug pull and protect your assets:
- Research the team. Look for verified public profiles (LinkedIn, X). A fully anonymous team is a major red flag.
- Analyze tokenomics. Check how tokens are distributed. High concentration in a few wallets raises risk.
- Check liquidity locks. Use tools like Unicrypt to verify if liquidity is locked. Without it, teams can pull funds anytime.
- Use blockchain analytics. Monitor token holders and large transactions for warning signs.
- Review audits. Ensure the project has been reviewed by a third party (e.g., CertiK or Hacken).
- Beware of hype. Avoid investing solely based on buzz without fundamentals.
- Don’t rely on influencers. Always conduct your own research.
- Check trading activity. High volume with low community engagement could indicate fake transactions.
- Invest cautiously. Only risk what you can afford to lose.
- Watch for red flags. Sudden shutdowns of the website or social media accounts can signal an exit.
These tips will help you spot signs of a scam and understand how to vet a project before investing. If you notice suspicious activity, consider switching to more reliable assets.
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Previously, Quickex covered the decline of Bitcoin and how escalating conflict in the Middle East is impacting the crypto market.