MegaETH’s $1 Billion Raise Implodes After Multisig Mishap

Hi! In today’s edition:

• 🧨 MegaETH scraps its $1 billion raise after a multisig error

• 🇺🇸 Polymarket becomes the first CFTC approved onchain prediction market

• 🕳️ Bubblemaps alleges EDEL token sniping across dozens of wallets

• 💵 Klarna enters crypto with a new USD stablecoin on Stripe’s Tempo chain

Today’s newsletter is brought to you by Uniswap!

Add onchain trading to your product without the hassle. The Uniswap Trading API provides simple, plug-and-play access to deep liquidity - powered by the same protocol that’s processed over $3.3 trillion in volume with zero hacks.

Get enterprise-grade execution that combines onchain and offchain liquidity sources for optimal pricing. No need for complex integrations, ongoing maintenance, or deep crypto expertise - just seamless, scalable access to one of the most trusted decentralized trading infrastructures.

More liquidity. Less complexity.

MegaETH Aborts $1B Cap Raise After Multisig Error Triggers Chaos

MegaETH scrapped its $1 billion fundraising plan after technical failures derailed the token sale, leading to a surge in deposits beyond the planned limits.

The pre-deposit campaign to raise liquidity ahead of its mainnet launch went south after demand flooded third-party APIs, crashing the website. When it finally opened, the initial $250 million cap was filled in just 156 seconds.

That prompted the MegaETH team to raise the cap to $1 billion. However, the team accidentally set a multisig transaction to require 4 out of 4 signatures instead of 3 out of 4, allowing anyone to execute a $1 billion funding cap increase prematurely.

A user, who goes by “chud.eth” on X, signed the transaction 34 minutes before it was meant to go live.

This triggered a flood of new deposits, and by the time MegaETH attempted to set a new cap of $400 million, those deposits had exceeded it as soon as the transaction landed. 

The team then set a new limit of $500 million and announced it would “no longer move forward” with the $1 billion cap.

“This was not acceptable. We encountered a variety of minor technical issues that, when compounded, provided a subpar user experience,” said the MegaETH team in a post.

🦃‼️Last Unchained On Air before Thanksgiving!

[Don’t worry, we’ll be back Friday]

👀Watch Uneasy Money at 3pm ET

Hosts Kain Warwick, Taylor Monahan, and Luca Netz break down Monad hitting mainnet, MegaETH’s TVL campaign, Polymarket’s green light from the CFTC, Klarna’s stablecoin launch, and more!

📺️ Catch it: YouTube, X, PumpFun, or Twitch

Polymarket Gets CFTC Green Light to Operate in the US

Polymarket has won regulatory approval from the U.S. Commodity Futures Trading Commission (CFTC) to operate a fully regulated and intermediated prediction market trading platform in the U.S. 

“Polymarket is now permitted to introduce intermediated access, enabling users to trade through FCMs and leverage traditional market infrastructure, custody, and reporting channels,” said Polymarket in a Tuesday notice. 

The approval marks the first time an onchain prediction market has been recognized within the U.S. regulatory system.

It will, however, require Polymarket to implement enhanced surveillance, clearing procedures, and regulatory reporting standards.

Edel Finance Sniped 30% of EDEL Worth $11M: Bubblemaps

Edel Finance has reportedly sniped a third of the EDEL token supply and attempted to conceal it by moving the tokens across multiple wallets and liquidity positions.

Onchain analytics firm Bubblemaps flagged a series of transfers that highlighted the movement of funds across wallets. 

Hours before EDEL launched, around 60 wallets were funded from Binance. Then, through a fresh layer of wallets, they sniped around 30% of EDEL’s supply, now worth $11 million.

Each of the wallets received only half the EDEL they sniped, while the other half was sent to a cluster of 100 secondary wallets, which were all included in the token contract creation code.

“This creates a clear link between the team and the snipers,” explained Bubblemaps.

Edel co-founder James Sherborne disputed the allegations on X, saying, “not accurate...we actually acquired ~60% of supply and placed the tokens into a vesting contract, as per the docs.”

However, Bubblemaps pushed back and said, “The way you’re responding and sending your minions to spam our replies shows exactly what kind of project this is.”

Klarna Launches Stablecoin Built on Stripe’s Tempo Chain

Buy-now pay-later firm Klarna has entered the digital asset space by launching a new U.S. dollar-backed stablecoin called KlarnaUSD, with the goal of slashing cross-border payment fees for its 114 million users.

“The move comes as McKinsey estimates stablecoin transactions now top $27 trillion a year — and could overtake legacy payment networks before the decade is out,” said the firm in its announcement. 

It also marks a significant strategic shift for Klarna, whose CEO Sebastian Siemiatkowski was previously critical of crypto, calling it a "decentralized Ponzi scheme.”

The KlarnaUSD stablecoin is built on Tempo, a layer 1 blockchain developed by Stripe and Paradigm specifically for payment transactions. It is issued through Bridge, Stripe’s stablecoin infrastructure.

While KlarnaUSD is currently live on Tempo’s testnet, a full mainnet rollout has been planned for 2026.

Bits + Bips: Why the Markets Now Have a Bullish Setup

Markets look constructive, but DATs may be the weakest link.

In this week’s Bits + Bips, Austin Campbell, Ram Ahluwalia, and Chris Perkins dig into a macro environment that’s suddenly turning more supportive: QT ending, institutions stepping in, improving liquidity signals, and major catalysts across global markets. But while the setup may be bullish, one corner of crypto isn’t participating at all: DATs, which Ram calls “a death spiral.”

The hosts debate whether altcoins can recover, whether Strategy pushed its structure too far, if banks’ unrealized losses still matter, and why the return of ICO-style launches may say more about regulation than mania.

Listen to the episode on Apple Podcasts, Spotify, Pods, Fountain, Podcast Addict, Pocket Casts, Amazon Music, or on your favorite podcast platform.

Why Berachain Gave Brevan Howard a Secret $25M Escape Hatch

The documents behind one of the strangest VC terms we’ve seen in crypto.

Crypto funding rounds often look glamorous from the outside: big name investors, big valuations, big narratives. But behind the scenes, the terms can look very different — and sometimes, radically so.

In this episode of Bits + Bips, host Steve Ehrlich sits down with reporter Jack Kubinec, who broke the story about Berachain’s Series B and one of the most unusual terms we’ve seen in a major token deal: a lead investor receiving the right to ask for its entire $25 million investment back, for up to a year after Berachain’s token launched.

Jack walks through what the documents show, why lawyers say the clause is extremely rare, and how a refund right like this could impact other investors, and even trigger MFN clauses. They also unpack Berachain’s market struggles since TGE, the state of the Nova Digital fund inside Brevan Howard, and the transparency questions this episode raises across crypto venture investing.

Listen to the episode on Apple Podcasts, Spotify, Pods, Fountain, Podcast Addict, Pocket Casts, Amazon Music, or on your favorite podcast platform.

Bring onchain trading to your app with the Uniswap Trading API. Access global liquidity, simplify integration, and power swaps at scale - all from one reliable API.

• 📊 Strategy claimed its bitcoin reserves still covered its convertible debt several times over—even if BTC fell back to $74,000 or as low as $25,000—yet the company was once again denied entry into the S&P 500 despite leaning heavily on this “BTC Rating” metric to justify its financial strength.

• 🧠 Coinbase Ventures forecasted that 2026 would revolve around tokenized real-world assets, niche trading platforms, more composable DeFi tools, and AI-powered robotics networks, highlighting a shift toward merging physical-world markets with automated crypto systems.

• 🟦 White House economic adviser Kevin Hassett has emerged as Trump’s favorite pick for Federal Reserve chair, in part because he supports lower interest rates, while disclosures showing he previously advised Coinbase and owns over $1 million in its stock stirred fresh debate over potential conflicts of interest.

• 🤖 SKALE, a layer 1 blockchain, launched an AI-focused layer 3 network on Coinbase’s Base chain to give autonomous agents a faster, gas-free environment to run payments and computations, aiming to let the same agent software operate consistently across many blockchains without relearning different fee systems.

• 💵 Anchorage Digital created a workaround to the GENIUS Act’s ban on interest-bearing stablecoins by routing reward payments for USDtb and USDe holders through a separate offshore entity, offering institutions yield-like benefits while keeping the bank itself compliant.

• 🇰🇷 Upbit’s parent Dunamu said it may appeal South Korea’s $25 million penalty and temporary onboarding ban after regulators accused the exchange of millions of KYC and AML failures, arguing past FIU actions have been overturned and pledging stronger investor-protection controls.

• 🤠 Texas became the first U.S. state to buy bitcoin after purchasing $10 million worth at roughly $87,000 per coin, with officials saying they will eventually self-custody the assets once the state’s procurement process for storage services is completed.

• 💳 Kraken rolled out a Mastercard-backed debit card with 1% cashback and multi-asset spending as part of a push to turn its Krak app into a full banking alternative, adding features like salary deposits and DeFi “Vaults” that channel user funds into audited onchain yield strategies.

• 💱 U.S. Bank revealed it is testing its own stablecoin on the Stellar blockchain alongside PwC and the Stellar Development Foundation, joining a wave of major banks experimenting with blockchain-based payments following new federal rules that explicitly regulate stablecoins.

• 🇰🇷💹 South Korea’s Naver Financial confirmed it will acquire Upbit operator Dunamu through a massive $10.28 billion stock-swap deal, positioning the tech giant to dominate the country’s digital-finance sector while fueling speculation about a future Nasdaq listing for Upbit.

• 🔐 Paxos acquired digital-asset wallet provider Fordefi for over $100 million to expand its institutional custody stack, integrating Fordefi’s high-security MPC technology—used to protect more than $120 billion in monthly transfers—into a broader platform for stablecoin issuance and onchain payments.

1. Arca: The Hard Conversations Crypto Needs Right Now

2. Bitcoin's End of the 4-year Cycle is the Beginning of a New "2-year Cycle" by Jeff Park

3. Narrative > Revenue by Counter Party TV’s dnap