logo

MegaETH Response to Community Concerns on Pre-Deposit Event: User Fund Security, Withdrawal Open

By: blockbeats|2025/11/26 16:00:01
0
Share
copy
Source: MegaETH

Editor's Note: Yesterday, MegaETH held an open deposit event, during which temporary changes to the hard cap and user deposit difficulties led to some community dissatisfaction. Subsequently, MegaETH's official team responded on social media, apologizing and announcing the upcoming opening of withdrawals, emphasizing user fund security.

Below is MegaETH's recap of the event and response to the community:

The situation that occurred earlier was unacceptable to us. A series of minor technical issues compounded, resulting in a user experience below the expected standard.

We understand that some users may wish to withdraw their funds, especially those participants who deployed funds based on the expected $250 million limit. To address this, we will launch a withdrawal page in the coming days and simultaneously release detailed instructions on the deposit bridging event. User funds were never at risk, and we sincerely thank everyone for their support.

Event Recap

Given the scale of participation, we believe it is necessary and transparent to recount the events for collaborative planning of next steps. While the assets were always secure, this is not an excuse—we hold ourselves to a higher standard.

Below is a full retrospective of the event:

Preparation Phase

It is necessary to outline all steps involved in the event:

1. Deposit Website

→ Operated by MegaETH

→ Sent KYC validity verification request to Sonar API

-- Price

--

2. Deposit Smart Contract

→ Managed by MegaETH through a Safe multi-signature wallet (4/6)

→ Responsible for setting the sale time, limit parameters, and Sonar Sale Unique Identifier (SaleUUID)

→ Only accepted valid signature deposits from the website, preventing bot operations

3. Sonar System

→ Operated by Echo

→ Responsible for validating KYC information for specific sales

Issue Root Cause

The following are issues encountered during the event:

SaleUUID Mismatch Exception

· Transaction initiation failed due to a mismatch between the SaleUUID stored in the prepayment contract and the system

· Correcting the erroneous value requires a multisig transaction (involving coordination of 4 out of 6 signers), consuming significant coordination time

Sonar Rate Limiting and System Downtime

· Sonar began blocking access requests due to misconfigured rate limits (threshold set too low)

· Users were unable to complete fund deposits

· Root cause identification and deployment of a fix took 23 minutes after the issue was discovered

Random Restart Mechanism

· After resolving all server issues, the system randomly restarted as per the predefined automation (designed to ensure fairness)

· However, upon system restart, the fundraising cap was instantly reached

Unexpected Influx of Funds

· A sudden surge of $250 million flooded the prepayment website continuously

· The team decided to increase the cap to $1 billion at the next hour mark (approximately 40 minutes later), requiring another 4 out of 6 multisig transaction to adjust the parameters

· The team has completed signature collection and is ready to submit at the scheduled time

· However, the operator executing the cap increase transaction is unfamiliar with the Safe wallet functionality

$500 Million Cap and Pause Decision

· At this point, more users constantly refreshing the website discovered the ability to resubmit deposits, while users following official channels did not promptly realize the cap adjustment

· The team initially attempted to set a $4 billion new cap to balance the advantage of early depositors, but deposits exceeded the expected amount during transaction confirmation

· The cap was eventually successfully set at $5 billion (currently fully allocated)

Due to the rapid changes in the final adjustment in the last hour, we have decided to pause the planned cap increase to $10 billion. As there is still a KYC verification obstacle that has not been fixed and is hindering user participation, we will no longer proceed with raising the fundraising cap.

This article is contributed content and does not represent the views of BlockBeats.

You may also like

Naval personally takes the stage: The historic collision between ordinary people and venture capital

Naval personally stepped in as the chairman of the USVC Investment Committee. This SEC-registered fund launched by AngelList attempts to bring top private tech assets like OpenAI, Anthropic, and xAI to the general public with a $500 entry threshold. It is not just a new fund, but a structural experi...

a16z Crypto: 9 Charts to Understand the Evolution Trends of Stablecoins

Stablecoins are evolving from trading tools into universal payment infrastructure, and this process is quieter and more thorough than most people expected.

Refutation of Yang Haipo's "The End of Cryptocurrency"

This may be the true test of cryptocurrency. It's not about whether the price has reached a new high, nor about who will achieve financial freedom in the next bull market, but rather whether, after all the grand narratives have been washed away by cycles, it can still leave behind some simpler, more...

Can a hairdryer earn $34,000? Interpreting the reflexivity paradox of prediction markets

Prediction markets are essentially betting on reality, and when participants can access or even influence this path earlier, the market no longer just reflects reality but begins to shape it in return.

6MV Founder: In 2026, the "landmark turning point" for crypto investment has arrived

"I will deploy funds in 2026, so I will tell you this is the best year in history."

Abraxas Capital Mints $2.89 Billion USDT: Liquidity Boost or Just More Stablecoin Arbitrage?

Abraxas Capital just received $2.89 billion in freshly minted USDT from Tether. Is this a bullish liquidity injection for crypto markets, or is it business as usual for a stablecoin arbitrage giant? We analyze the data and the likely impact on Bitcoin, altcoins, and DeFi.

Popular coins

Latest Crypto News

Read more