MegaETH USDm Launch Causes Chaos

MegaETH’s USDm stablecoin pre-deposit launch was marred by a bridge outage, KYC system failures, and a misconfigured multisig that allowed an early cap raise.

What's the scoop?

• Bridge & KYC Downtime: Launch opened at 9 a.m. ET with a $250M cap, but bridge and KYC mismatches blocked deposits for ~30 minutes.
• Cap Filled Instantly: After fixes, the entire $250M was taken within seconds by users repeatedly refreshing.
• Multisig Blunder: The cap-raise transaction was mis-set to 4-of-4; once all owners signed, anyone could execute it, and a community member triggered it ~30 minutes early.
• Uncontrolled Deposit Surge: Deposits reopened unintentionally and shot past $400M while the team rushed out multisig changes to enforce $400M and then $500M caps.
• Launch Halted at $500M: The team dropped the $1B expansion, citing unresolved KYC bugs, and enabled withdrawals due to the chaotic rollout.

Bankless Take:

The MegaETH team’s retro is commendably transparent, but the laundry list of basic errors still stings for such a technically-advanced project.” Yet, crypto has a short memory span and given that no funds were lost I expect this to blow over quickly. To this end, the comments on the team’s retro post are quite telling — people want the $1B expansion.