# MegaETH USDm Launch Causes Chaos

*Author: David Christopher*
*Published: Nov 25, 2025*
*Source: https://www.bankless.com/read/news/megaeth-usdm-launch-causes-chaos*

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MegaETH’s USDm stablecoin pre-deposit launch was marred by a bridge outage, KYC system failures, and a misconfigured multisig that allowed an early cap raise. 

### What's the scoop?
- **Bridge & KYC Downtime:** Launch [opened at 9 a.m. ET](https://www.theblock.co/post/380402/megaeth-usdm-stablecoin-deposit-launch-turbulence-outages-cap-flips) with a $250M cap, but bridge and KYC mismatches blocked deposits for ~30 minutes.
- **Cap Filled Instantly:** After fixes, the entire $250M was taken within seconds by users repeatedly refreshing.
- **Multisig Blunder:** The cap-raise transaction was mis-set to 4-of-4; once all owners signed, anyone could execute it, and a community member triggered it ~30 minutes early.
- **Uncontrolled Deposit Surge:** Deposits reopened unintentionally and shot past $400M while the team rushed out multisig changes to enforce $400M and then $500M caps.
- **Launch Halted at $500M:** The team dropped the $1B expansion, citing unresolved KYC bugs, and enabled withdrawals due to the chaotic rollout.

### Bankless Take:
The MegaETH team’s retro is commendably transparent, but the laundry list of basic errors still stings for such a technically-advanced project.” Yet, crypto has a short memory span and given that no funds were lost I expect this to blow over quickly. To this end, the comments on the team’s retro post are quite telling — people want the $1B expansion.

[![](https://storage.ghost.io/c/e4/b7/e4b77544-5a37-4f0b-8824-8440aa348476/content/images/2025/11/image-23.png)](https://x.com/megaeth/status/1993395774164488361)