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

Dialogue with the founder of Pantera: Bitcoin has reached escape velocity, traditional assets are being left behind

The growth dilemma of Base: everything was done right, yet users still leave

Predicting the World Cup "Showdown": Over 150 projects are gearing up, with a total investment of nearly 6 billion dollars

RootData launches the "A-Level Transparency Project Briefing," directly reaching the cryptocurrency listing decision-making chain

What does DeFi look like that Wall Street wants?

Drift Protocol Hack: Understanding One of the Largest Solana Ecosystem Breaches
Key Takeaways Drift Protocol, a decentralized exchange on Solana, experienced a $270 million hack, making it one of…

Navigating the Drift Protocol Security Incident: What You Need to Know
Key Takeaways On April 2, Drift Protocol experienced a security breach where a malicious actor gained administrative control.…

Upbit and Bithumb Designate DRIFT as a Trading Alert Item
Key Takeaways Upbit and Bithumb have labeled DRIFT as a “trading alert” asset following guidance from the Digital…

“Brother Maji” Faces Potential Liquidation with ETH Long Position
Key Takeaways “Brother Maji” currently holds a substantial 25x leveraged long position of 6,000 ETH. The position was…

Wormhole’s Response to Drift Protocol Incident: Delays in Cross-Chain Transfers
Key Takeaways Wormhole confirmed that user assets remain safe despite the Drift Protocol attack. The Solana ecosystem’s built-in…

Bitget Launchpool and MEZO: Navigating the Crypto Reward Opportunities
Key Takeaways Bitget Launchpool offers a way to earn tokens like MEZO by staking assets. The current MEZO…

XRP Price Prediction: Could Ripple Transform into a National Bank?
Key Takeaways: The OCC’s final rule effective from April 1 disrupts traditional banking, potentially allowing Ripple to emerge…

Ripple XRP Approaches National Bank Status: OCC Rule’s Impact
Key Takeaways: Ripple’s journey to full national trust bank status advanced significantly with the OCC’s new rule on…

Cardano Price Forecast: Is ADA Recovery a Bull Trap?
Key Takeaways: Cardano’s price recovery to $0.27 raises questions about whether this is a genuine trend change or…

BNB Price Prediction: Is Binance’s New Prediction Market a Game-Changer?
Key Takeaways: BNB holds a psychological price level at $614, with bullish momentum fueled by Binance’s prediction market.…

Fed’s Barr Advocates Stringent Stablecoin Oversight Amid Historical Lessons
Key Takeaways: Fed Governor Michael Barr stresses the necessity of rigid stablecoin oversight, referencing historical financial instabilities. The…

Solana Price Prediction: Interactive Brokers Backs SOL, Galaxy Digital Expands Support
Key Takeaways: Solana trades sluggishly at $84, despite backing from Interactive Brokers and Galaxy Digital. Institutional interest positions…

Ethereum Price Forecast: Will ETH Sustain Its Momentum?
Key Takeaways: Ethereum ended March with a 7% gain, vastly outshining Bitcoin’s modest 1% increase. Ethereum showed a…
Dialogue with the founder of Pantera: Bitcoin has reached escape velocity, traditional assets are being left behind
The growth dilemma of Base: everything was done right, yet users still leave
Predicting the World Cup "Showdown": Over 150 projects are gearing up, with a total investment of nearly 6 billion dollars
RootData launches the "A-Level Transparency Project Briefing," directly reaching the cryptocurrency listing decision-making chain
What does DeFi look like that Wall Street wants?
Drift Protocol Hack: Understanding One of the Largest Solana Ecosystem Breaches
Key Takeaways Drift Protocol, a decentralized exchange on Solana, experienced a $270 million hack, making it one of…
