- MegaETH faced technical problems during its pre-deposit window ahead of its Frontier mainnet launch in December 2025.
- KYC verification was overloaded, and a $250 million deposit cap was reached in under three minutes.
- The deposit cap raised to $1 billion was executed prematurely by a user and then adjusted multiple times by the team.
- Final deposit cap was set at $500 million amid ongoing KYC issues.
- Analysis showed deposits came from 4,589 unique addresses, with the largest single deposit at $40 million.
MegaETH experienced significant disruptions during its pre-deposit window on November 25, 2025, ahead of the December launch of its Frontier mainnet. Technical difficulties affected the know-your-customer (KYC) verification process, and a $250 million deposit cap was met within three minutes.
An official statement from MegaETH‘s X profile described the day’s events as “not acceptable”, citing a series of minor technical issues that degraded user experience. The initial sale was delayed by a “mismatch in SaleUUID” between the deposit contract and the KYC service provider, Sonar. Additional congestion occurred due to a misconfigured rate limit on Sonar’s side, which was set too low.
After resolving these issues, the $250 million cap was filled in approximately 2.5 minutes. In response, the team increased the cap to $1 billion and planned to reopen deposits two hours later. The cap increase required approval through Safe, a multisignature (multisig) wallet needing four signatures. Although all signatures were obtained in advance, a user named chud.eth executed the transaction early. MegaETH explained that the executor was unfamiliar with the multisig process, leading to an unauthorized early cap increase.
Following this, the team reverted the cap to $400 million, but deposits had already exceeded that amount. They ultimately set the cap at $500 million, 13 minutes after the premature execution, but before the scheduled time. Ongoing KYC verification bugs prevented many users from participating, prompting MegaETH to decide against raising the cap further.
Blockchain analyst Dethective shared data showing 4,589 unique deposit addresses. The largest single deposit was $40 million, with an average deposit of about $102,000 and a median deposit of $3,100. The top 10 depositors accounted for 29% of the total funds.
This situation reflects DeFi’s permissionless nature, where users can act independently within decentralized protocols. In this case, the unintended multisig transaction raised questions about the development team’s readiness. Past examples include an anonymous user launching Curve Finance‘s DAO contracts and governance token without the official team’s input.
All related links and official information remain available on MegaETH’s website and their X profile. For more context on DeFi incidents, see the linked reports on dethective’s analysis and previous DeFi project challenges.
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