Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Ethereum layer-2 project MegaETH to refund $400m after USDM launch failure

Ethereum layer-2 project MegaETH to refund $400m after USDM launch failure

Crypto.NewsCrypto.News2025/11/27 16:00
By:By Andrew FolklerEdited by Dorian Batycka

Ethereum layer-2 megaeth will refund over $400m after a misconfigured multisig and third-party bridge issues derailed its usdm launch.

Summary
  • Megaeth will return all funds after technical failures pushed usdm deposits above $400 million. ​
  • A misconfigured multisig let an external party reopen the bridge early, after outages at a third-party provider. ​
  • Refunds await a contract audit, with a redesigned usdc-usdm bridge planned before the frontier mainnet beta.

Ethereum Layer-2 project MegaETH announced it will refund all funds following operational failures that disrupted the launch of its native stablecoin, USDm, according to a statement from the project.

We've decided to return all funds.

Execution was sloppy and expectations weren’t aligned with our goal of preloading collateral to guarantee 1:1 USDm conversion at mainnet.

How this decision impacts you:

— MegaETH (@megaeth) November 27, 2025

The refunds follow a series of technical issues, including a misconfigured multisig transaction that triggered an early reopening of the deposit platform, pushing total deposits past $400 million, the project said. Refunds are pending completion of a smart-contract audit, with a new USDC-USDm bridge planned before the mainnet beta launch.

The launch encountered disruptions from the outset, according to the project’s timeline. A technical problem with a third-party bridge provider rendered the service inaccessible for approximately one hour while users awaited access.

Once the platform resumed operations, the $250 million threshold was reached within minutes. The team subsequently announced plans to raise the deposit cap to $1 billion, according to the statement.

During the process of increasing the cap, a multisignature transaction controlling contract parameters was incorrectly configured. The transaction was set to require all four signatures instead of three out of four approvals. The error allowed an external party to execute the queued transaction nearly 34 minutes before the bridge was scheduled to reopen, resulting in deposits resuming earlier than planned and surpassing $400 million.

MegaETH attempted to contain the situation by reducing the cap to $400 million, then later raising it to $500 million. The project ultimately abandoned plans to expand the limit to $1 billion.

Following the incident, MegaETH confirmed it will return all funds to participants. The refund contract is currently under audit, with repayments scheduled to begin after the review is completed, according to the project.

MegaETH plans to reopen its conversion bridge between USDC and USDm ahead of its Frontier mainnet release, which will serve as the network’s beta phase.

MegaETH is an Ethereum Layer-2 network designed to improve transaction speed and reduce costs for blockchain applications. While Ethereum processes approximately 30 transactions per second, MegaETH claims a theoretical capacity of up to 100,000 transactions per second, with sub-millisecond latency and fees below $0.01.

The project uses a proof-of-stake model with a performance-based system to calculate staking rewards. Holders who stake MEGA tokens will participate in governance through a decentralized autonomous organization, allowing them to vote on future changes. Both the DAO and the full staking framework are expected to launch 12 to 18 months after mainnet goes live, according to the project.

0
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

ICP Value Jumps 30% Following Key Network Improvements: Exploring How Protocol Advancements Are Transforming Long-Term Value Outlook for Web3 Infrastructure

- Internet Computer (ICP) surged 30% to $4.71 in November 2025, driven by protocol upgrades and AI-powered smart contracts. - Flux/Stellarator upgrades enhanced storage and sharding, while Chain Fusion enabled cross-chain interoperability with Bitcoin , Ethereum , and Solana . - Institutional adoption and hybrid cloud partnerships boosted DeFi TVL to $237 billion, though dApp engagement dropped 22.4% amid regulatory scrutiny. - Security milestones like Niobium/Magnetosphere fortified governance, yet challe

Bitget-RWA2025/12/06 17:48
ICP Value Jumps 30% Following Key Network Improvements: Exploring How Protocol Advancements Are Transforming Long-Term Value Outlook for Web3 Infrastructure

Crypto Market Loses $400B in Just One Month

The total crypto market cap fell by $400 billion in a month, raising concerns among investors amid rising volatility.Bearish Sentiment Grows Among InvestorsWhat’s Next for the Crypto Market Cap?

Coinomedia2025/12/06 17:45
Crypto Market Loses $400B in Just One Month

XRP Price Prediction December 2025: Sentiment Crashes as Traders Move Toward DeepSnitch AI After 74% Jump

XRP price prediction gains new importance after Santiment reports extreme fear levels. DeepSnitch AI accelerates past $678K as investors move toward intelligence-first presales.Fear-driven pullback reshapes XRP price prediction outlookFinal verdict: Fear-driven XRP reset changes December’s outlookFAQs

Coinomedia2025/12/06 17:45
XRP Price Prediction December 2025: Sentiment Crashes as Traders Move Toward DeepSnitch AI After 74% Jump

How to Buy DeepSnitch AI From the Official Website? A Complete Guide to Joining the Presale of the Next 100X Crypto Moonshot of 2026

This beginner-friendly, step-by-step guide shows you how to buy DeepSnitch AI, from connecting your wallet to purchasing your first DSNT tokens in one go.What is DeepSnitch AI, and why is everyone talking about it?Is it safe to buy DeepSnitch AI?How to buy DeepSnitch AI from the official website in 3 easy stepsIs DeepSnitch AI worth investing in or just another hype token?ConclusionFAQs

Coinomedia2025/12/06 17:45
How to Buy DeepSnitch AI From the Official Website? A Complete Guide to Joining the Presale of the Next 100X Crypto Moonshot of 2026
© 2025 Bitget