$400 Millions Vanished! MegaETH Stumbles into Fatal Multisig Error

Source: TokocryptoBlog Original Title: $400 Millions Vaporized! MegaETH Stumbles Upon Fatal Multisig Error! Original Link: https://news.tokocrypto.com/400-juta-menguap-megaeth-tersandung-kesalahan-multisig-fatal/

Bridge Failed, Funds Surge Out of Control

The Pre-Deposit Bridge USD was initially designed to raise up to $250 million to prepare liquidity ahead of the stablecoin's launch. However, that plan immediately went off track after:

• Technical issues with the third-party bridge provider that made the service inaccessible for nearly an hour.
• SaleUUID error in the contract that caused the transaction to fail and forced the team to make repairs through 4-of-6 multisig.
• KYC restrictions by Sonar, which limit traffic and prevent many users from participating.

After the issues were resolved, deposits flooded in and exceeded the limit within minutes. MegaETH attempted to raise the limit to $1 billion, but the situation only became more chaotic.

Multisig Error Triggers Early Bridge Opening

When trying to raise the deposit limit, the MegaETH team made a fatal mistake: an incorrect multisig configuration. Instead of 3-of-4, the transaction actually required four full signatures, making it executable by anyone once completed.

As a result, someone from the outside executed the transaction 34 minutes early, reopening the bridge prematurely and causing deposits to soar past $400 million.

MegaETH's efforts to limit deposits to $400 million, then $500 million, until canceling the plan to $1 billion, could not stem the chaos that occurred. Some users were able to enter quickly, while those relying on official information were left behind.

MegaETH Acknowledges Mistake, Refunds Ready to Begin

MegaETH has finally acknowledged the “sloppy execution” and the lack of synchronization between the internal team and the public. While asserting that user funds were never at risk, they admit that the process was unfair.

Currently, the refund contracts are being audited, and refunds will start to be issued once the process is completed. Although no specific date is provided, MegaETH ensures that the refunds will be processed as quickly as possible.

Next Steps: New Bridge, Focus on Frontier Mainnet

After this incident, MegaETH promised to relaunch the USDC to USDm bridge with stricter operational oversight before entering the beta phase of the Frontier mainnet.

MegaETH continues to emphasize its vision as a high-performance Layer-2 network with:

• up to 100,000 TPS,
• sub-millisecond latency,
• transaction fee below $0.01,
• and proof-of-stake model with a performance-based incentive system.

The staking feature and DAO governance are planned to be available 12–18 months after the mainnet launch.

Brief Analysis

Industry observers believe that MegaETH's decision to offer a full refund is commendable, although this launch is seen as an indicator that the team needs to improve operational readiness. The Frontier mainnet presents an important opportunity for MegaETH to restore community trust.