MegaETH Cancels $1B Raise After Technical Failures

MegaETH has scrapped its planned $1 billion fundraising round after multiple technical issues created a poor and confusing user experience during its pre-deposit event. According to the team, deposits were never at risk, but a series of failures made the sale unfair for many participants.

The problems began with a mismatched SaleUUID, a critical value linking the pre-deposit contract to Sonar, the platform responsible for KYC verification. Early transactions failed, and fixing the issue required a multisig update that caused delays. Sonar was also rate-limited, preventing many users from passing verification.

When the system recovered, the sale opened unexpectedly, filling the initial $250 million cap almost immediately. MegaETH planned to expand the cap to $1 billion, but a premature multisig execution triggered the raise early, causing further confusion.

With KYC issues still blocking users and inconsistent deposit windows, the team canceled the extension. MegaETH says it will reassess its approach and propose a revised plan as it works to restore trust.

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