{"id":16630,"date":"2025-11-26T03:29:00","date_gmt":"2025-11-26T03:29:00","guid":{"rendered":"https:\/\/bitunikey.com\/news\/megaeth-halts-1b-fundraising-plan-due-to-technical-failures\/"},"modified":"2025-11-26T03:29:04","modified_gmt":"2025-11-26T03:29:04","slug":"megaeth-halts-1b-fundraising-plan-due-to-technical-failures","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/megaeth-halts-1b-fundraising-plan-due-to-technical-failures\/","title":{"rendered":"MegaETH halts $1B fundraising plan due to technical failures"},"content":{"rendered":"<p><\/p>\n<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">MegaETH has run into problems that forced the team to pull back from an expansion of its token sale.<\/p>\n<div id=\"cn-block-summary-block_c41a458dccf071f55977ac8a4503d9ac\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>A misconfigured multisig and overloaded KYC APIs were some of the issues that caused repeated failures during launch.<\/li>\n<li>Rate-limits on Sonar\u2019s infrastructure contributed to the breakdown.<\/li>\n<li>No funds were at risk, but the user experience failed, prompting MegaETH to pause expansion.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>According to a Nov. 25 series of posts on X, MegaETH said it is no longer pursuing its plan to increase its pre-deposit cap from $250 million to $1 billion after a string of technical issues disrupted the event.\u00a0<\/p>\n<p>The Ethereum layer-2 project said the experience \u201cwas not acceptable\u201d and confirmed that a withdrawal page is coming for users who want their funds returned.<\/p>\n<h2 class=\"wp-block-heading\">$1B raise halted after cascading failures<\/h2>\n<p>MegaETH described the incident as a mix of configuration errors, slow coordination around multisig updates, and separate failures from its KYC partner, Sonar. <\/p>\n<p>These issues combined to create a launch window that opened earlier than planned, blocked deposit attempts, and led to a rush of activity that filled the initial $250 million cap almost instantly.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"zxx\" dir=\"ltr\"><a rel=\"nofollow\" target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/t.co\/hL0iIM0c3A\">https:\/\/t.co\/hL0iIM0c3A<\/a><\/p>\n<p>\u2014 MegaETH (@megaeth) <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/twitter.com\/megaeth\/status\/1993395774164488361?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">November 25, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>    <!-- .cn-block-related-link --><\/p>\n<p>Once the team tried to lift the limit, new problems followed. A mismatched sale identifier in the pre-deposit contract required a 4-of-6 multisig fix, while Sonar\u2019s rate limits caused extended downtime. <\/p>\n<p>By the time fixes were deployed, the system reopened at a random moment, allowing users who kept refreshing the page to deposit before others even knew the window was live.\u00a0<\/p>\n<p>Attempts to expand the cap to $400 million and then $500 million came too late, with the contract already oversubscribed before each limit took effect.<\/p>\n<h2 class=\"wp-block-heading\">Pre-deposit goals, user fallout, and next steps<\/h2>\n<p>The pre-deposit campaign was designed to supply early liquidity for MegaETH\u2019s mainnet launch by letting KYC-verified users commit USD Coin (USDC) in exchange for USDm, the network\u2019s upcoming stablecoin built with Ethena\u2019s (ENA) framework.<\/p>\n<p>The initial cap was set at $250 million with no individual limits, and participants would later receive reward multipliers tied to the MEGA token.<\/p>\n<p>The breakdown has prompted a wave of refund requests, although participants will still keep credit toward the rewards program. MegaETH said it will publish a full retro to explain the event in detail and outline how the team will prevent similar failures during the next phase of the launch.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>MegaETH has run into problems that forced the team to pull back from an expansion of its token sale. Summary A misconfigured multisig and overloaded KYC APIs were some of&hellip;<\/p>\n","protected":false},"author":1,"featured_media":15504,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-16630","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/16630","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=16630"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/16630\/revisions"}],"predecessor-version":[{"id":16631,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/16630\/revisions\/16631"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/15504"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=16630"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=16630"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=16630"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}