MegaETH halts fundraising due to technical errors... completely withdraws plan to expand deposits

MegaETH said it halted the fundraising process after exceeding the planned fundraising limit due to multiple technical errors that occurred during the pre-deposit phase.

On the 26th (local time), Cointelegraph reported that the MegaETH team said the KYC verification system was paralyzed during the opening process for pre-deposits due to configuration errors and rate-limit issues. The pre-deposit was an initial channel for verified users to secure a pre-allocation of MEGA tokens.

According to the team, an independently prepared Safe multisig approval transaction executed earlier than planned, allowing additional deposits, and the raised funds exceeded the intended $250 million. MegaETH explained, "Users repeatedly refreshing the pre-deposit website captured a random opening time and filled the $250 million limit."

Ultimately, the project froze deposits at $500 million and withdrew the previously considered $1 billion expansion plan. MegaETH added that it will soon disclose refund and retrospective programs. The team said, "There was no asset risk, but that is not the point," and "We must hold ourselves to a higher standard, and there are no excuses."

This pre-deposit halt occurred immediately after the MEGA token auction held on October 27. The MEGA auction sold out shortly after it opened, attracting bids at various prices from $2,650 to $186,282 for 5% of the total supply. An optional one-year lockup option received a 10% discount. Fundraising exceeded $1.3 billion, making it one of the most competitive sales this year.

Because the raised amount greatly exceeded the limit, MegaETH plans to apply a separate allocation method to calculate per-participant allotments. The project is developed by MegaLabs and is backed by industry figures including Ethereum co-founder Vitalik Buterin and Joe Lubin.

MegaETH is an Ethereum Layer 2 project aiming for ultra-low-latency real-time block processing and over 100,000 transactions per second (TPS). Development has been ongoing since the testnet was made public in March, and the MEGA token is scheduled to launch in early 2026.