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MegaETH to Refund Over $400 Million After Botched USDm Pre-Deposit

Repayments will run through a newly audited contract to reset trust before the project's Frontier beta.

Overview

  • The team acknowledged the launch "execution was sloppy" and said all pre-deposit contributions will be returned.
  • A misconfigured 4-of-4 multisig let an external party execute a queued change about 34 minutes early, reopening deposits and pushing totals past $400 million.
  • An outage at a third-party bridge provider and rapid cap shifts disrupted participation, with limits jumping from $250 million to plans for $1 billion before being scaled back.
  • MegaETH abandoned the proposed $1 billion cap expansion after deposits surged through multiple waves to roughly $400–$500 million.
  • The project says it will redesign the USDC–USDm bridge and aims to reopen conversion ahead of the Frontier mainnet beta after the refund contract audit is complete.