MegaETH to Refund $500M After Chaotic Pre-Deposit Launch

MegaETH will refund all $500 million raised in its pre-deposit campaign after technical failures, compliance concerns, and chaotic execution led to a complete reset. Refunds will be processed via an audited smart contract.

MegaETH has announced a full refund of all funds raised—amounting to approximately $500 million—during its pre-deposit bridge campaign, following a launch plagued by technical mishaps, operational failures, and compliance concerns. The campaign, intended to preload collateral for 1:1 USDm stablecoin conversions at mainnet, was marred by site outages, rapid and confusing changes to deposit caps, and a critical multisig configuration error that allowed premature deposits. The initial $250 million cap was reached in under three minutes, locking out many retail participants, and subsequent attempts to adjust the cap led to further complications, with deposits ultimately surpassing $400 million. Community sentiment was divided, with some criticizing the event's execution and others noting strong demand. Compliance issues, including inadequate disclosures and regulatory risks, prompted the team to reset the campaign and commit to full refunds via a new audited smart contract. The mainnet launch remains scheduled for December, but the incident has raised questions about MegaETH’s readiness and future community trust.