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

Crypto Price Prediction Today 18 February – XRP, Bitcoin, Ethereum
Key Takeaways XRP’s potential as a replacement for SWIFT is bolstered by regulatory approvals, potentially driving its price…

XRP Price Prediction: XRP is Outpacing Solana and Targeting Binance Coin Next – Should You Invest Now?
Key Takeaways XRP Ledger has moved into the sixth place by tokenized real-world asset value, surpassing Solana and…

New AI Predicts the Price of XRP, Dogecoin, and Solana By 2026
Key Takeaways ChatGPT anticipates significant price increases for XRP, Dogecoin, and Solana by the end of 2026. XRP…

Arthur Hayes Shares Two Scenarios for Bitcoin Price, Calling for a Major Crypto Rally
Key Takeaways Arthur Hayes predicts a significant crypto rally fueled by a $572 billion liquidity injection from the…

Bitcoin Price Prediction: Abu Dhabi Gov Funds Buy $1 Billion in BTC – What Do They Know?
Key Takeaways Abu Dhabi has revealed a $1 billion stake in Bitcoin through major ETF investments, signaling strong…

Bitcoin’s Divergence From Nasdaq Signals Dollar Liquidity Risk, Says Arthur Hayes
Key Takeaways Arthur Hayes highlights a concerning divergence between Bitcoin and the Nasdaq, pointing to a potential dollar…

Lagarde’s Possible Early Exit Could Alter Digital Euro Plans and Stablecoin Oversight
Key Takeaways Christine Lagarde’s potential departure as ECB president may disrupt the digital euro timeline and stablecoin policies.…

HYLQ Strategy Invests in Hyperliquid Quantum Solutions Pioneer qLABS, Acquires 18,333,334 qONE Tokens
Key Takeaways HYLQ Strategy Corp has made a strategic investment in qLABS, purchasing over 18 million qONE tokens…

WLFI Crypto Surges Toward $0.12 as Whale Purchase Precedes Trump-Linked Forum
Key Takeaways Whale accumulation has spurred a rally in WLFI crypto prices, reaching towards $0.12 ahead of a…

Cathie Wood Reverses Path with $6.9 Million Purchase in Coinbase Stock – Is ARK Strategizing a Rebound?
Key Takeaways ARK Invest acquires 41,453 shares of Coinbase, showing renewed interest post recent divestment. This acquisition by…

Crypto Lobby Establishes Working Group to Advocate for Prediction Market Regulatory Clarity
Key Takeaways The Digital Chamber announced the Prediction Markets Working Group to promote federal oversight of prediction markets.…

Peter Thiel Discreetly Withdraws from Ethereum Treasury Venture ETHZilla – A Cautionary Note for the DAT Model?
Key Takeaways Peter Thiel and Founders Fund have completely exited their position in ETHZilla. Thiel’s withdrawal raises questions…

Coin Center Advocates Protecting Crypto Developer Liability
Key Takeaways Coin Center is actively lobbying the U.S. Senate to safeguard crypto developer liability protections. The ongoing…

$150B in US Tax Refunds Could Catalyze Fresh Crypto Inflows, Historical Trends Indicate
Key Takeaways The IRS anticipates distributing approximately $150 billion in tax refunds to U.S. consumers by the end…

Oracle Error Leads DeFi Lender Moonwell to $1.8 Million in Bad Debt
Key Takeaways A critical oracle pricing glitch caused Moonwell to incur nearly $1.8 million in bad debt. The…

Crypto Price Prediction Today 18 February – XRP, Solana, Dogecoin
Key Takeaways XRP targets a $5 move, driven by its role as an alternative to SWIFT for cross-border…

China’s DeepSeek AI Predicts the Price of XRP, PEPE, and Shiba Inu By the End of 2026
Key Takeaways DeepSeek AI suggests significant potential price increases for XRP, PEPE, and Shiba Inu by 2026. XRP…

XRP Battles Key Support Amid Grayscale Sentiment Surge
Key Takeaways XRP has experienced a 29% price drop recently, creating a tense atmosphere among traders eyeing key…
Crypto Price Prediction Today 18 February – XRP, Bitcoin, Ethereum
Key Takeaways XRP’s potential as a replacement for SWIFT is bolstered by regulatory approvals, potentially driving its price…
XRP Price Prediction: XRP is Outpacing Solana and Targeting Binance Coin Next – Should You Invest Now?
Key Takeaways XRP Ledger has moved into the sixth place by tokenized real-world asset value, surpassing Solana and…
New AI Predicts the Price of XRP, Dogecoin, and Solana By 2026
Key Takeaways ChatGPT anticipates significant price increases for XRP, Dogecoin, and Solana by the end of 2026. XRP…
Arthur Hayes Shares Two Scenarios for Bitcoin Price, Calling for a Major Crypto Rally
Key Takeaways Arthur Hayes predicts a significant crypto rally fueled by a $572 billion liquidity injection from the…
Bitcoin Price Prediction: Abu Dhabi Gov Funds Buy $1 Billion in BTC – What Do They Know?
Key Takeaways Abu Dhabi has revealed a $1 billion stake in Bitcoin through major ETF investments, signaling strong…
Bitcoin’s Divergence From Nasdaq Signals Dollar Liquidity Risk, Says Arthur Hayes
Key Takeaways Arthur Hayes highlights a concerning divergence between Bitcoin and the Nasdaq, pointing to a potential dollar…