MegaETH, an emerging Ethereum Layer 2 scaling solution, announced on November 27, 2025, that it will return all approximately $500 million raised from its pre-deposit bridge for the USDm stablecoin, admitting in a social media post that "execution was sloppy and expectations weren't aligned with our goal of preloading collateral to guarantee 1:1 USDm conversion at mainnet."
The pre-deposit event launched on November 25, 2025, at 9 a.m. ET with an initial $250 million cap, but was immediately hit by an outage from a third-party bridge provider, causing approximately one hour of downtime. After service restoration, the cap was filled in under three minutes, prompting MegaETH to raise it to $1 billion. However, a misconfigured multisig transaction—set to 4-of-4 signatures instead of the planned 3-of-4—allowed an external user to execute it 34 minutes early, leading to over $400 million in deposits before the intended relaunch.
The team scrambled with emergency cap adjustments, first to $400 million and then to $500 million, but ultimately decided to refund all funds. A smart contract for refunds is currently under audit, with promises to process repayments shortly. MegaETH added that depositor contributions "will not be forgotten" and plans to reopen the USDC to USDm bridge ahead of its Frontier mainnet beta in December to boost liquidity, amid compliance concerns highlighting regulatory risks.
ETH
SOL
HYPE
BAL
POLY