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

2025 South Korea CEX Listing Post-Mortem: Investing in New Coins = 70% Loss?

The 2025 South Korean exchange's new token listing performance is structurally similar to Binance's, with no significant differences.

BIP-360 Analysis: Bitcoin's First Step Towards Quantum Immunity, But Why Only the "First Step"?

This article explains how BIP-360 reshapes Bitcoin's quantum defense strategy, analyzes its enhancements, and discusses why it has not yet achieved full post-quantum security.

50 million USDT exchanged for 35,000 USD AAVE: How did the disaster happen? Who should we blame?

Due to a fatal flaw in the transaction path, a $50 million DeFi operation was executed with almost zero protection, resulting in nearly the entire amount of funds evaporating in a tiny liquidity pool.

The Cryptographic Past of the Middle East

Reality is often more exciting than fiction.

Resolving the Intergenerational Prisoner's Dilemma: The Inevitable Path of Nomadic Capital Bitcoin

When the baby boomer generation collectively sells off, who will become the "greater fool" in the next round of asset crashes?

Who Will Control AI? Why Decentralized AI May Be the Only Alternative to Government and Big Tech

AI has become critical infrastructure, and governments and corporations are competing to control it. Centralized development and regulation are entrenching existing power structures. The Web3 community is building a decentralized alternative — distributed compute, token incentives, and community governance — before that window closes.

Popular coins

Latest Crypto News

Read more