MegaETH cancels $1 billion capacity expansion plan after technical failure

According to Cointelegraph, MegaETH was forced to suspend its pre-deposit activity yesterday due to a series of technical failures. The team stated that configuration errors and rate limiting issues caused the KYC system to malfunction, while a Safe multi-signature transaction that was supposed to be executed later was executed prematurely, leading to a surge in new deposits that exceeded the original cap of $250 million.

The team ultimately froze deposits at $500 million and canceled plans to expand to $1 billion. They stated that a retroactive mechanism and withdrawal options would be introduced soon, emphasizing that assets were never at risk, but they hold themselves to a higher standard with no excuses.

Previously, the auction for MegaETH's MEGA token opened on October 27 and was fully subscribed within minutes, ultimately attracting over $1.3 billion in commitments.