In the fast-paced world of blockchain projects, even the best-laid plans can go awry due to subtle technical oversights. A recent incident involving MegaETH highlights a critical vulnerability in how multisig wallets handle off-chain signatures. Shared via a humorous yet insightful comic on X by @hrkrshnn, this event serves as a cautionary tale for teams managing large-scale funding raises.

Understanding the Setup

On November 25, 2025, the MegaETH team aimed to execute a $1B cap raise at precisely 11:00 AM. To achieve this, they used a Safe multisig wallet requiring 4 out of 7 signatures. The plan was to collect these signatures off-chain in advance and submit the transaction at the scheduled time.

Multisig, short for multi-signature, is a security feature in crypto wallets that requires multiple approvals before executing a transaction. It's like having several keys to a safe—enhancing security by distributing control. Off-chain signatures mean these approvals are gathered without immediately broadcasting them to the blockchain, allowing for preparation without commitment.

The MegaETH setup involved their Safe multisig controlling a pre-deposit contract capped at $250M initially, with plans to increase it.

The Footgun: Visibility of Off-Chain Signatures

Here's where the "footgun"—a self-inflicted hazard—comes into play. The Safe TX Service API makes off-chain signatures publicly visible. This design choice simplifies access for owners without authentication but exposes the signatures to anyone who knows where to look.

In the comic, this is depicted with figures like "godtierfarmer.eth" and "chud.eth" observing the signatures via the API. While convenient, this transparency can be risky if not managed carefully.

As noted in the tweet: "The @megaeth issue is arguably a (known) footgun in Safe. All four signatures were off-chain signatures, but the @safe backend exposes them to anyone, as opposed to only other signers." (original tweet)

The Incident Unfolds

At 10:26 AM—34 minutes early—a transaction from "chud.eth" (not an owner) attempted to execute the cap raise to $1B using the collected signatures. Although it failed due to losing a race condition, it underscored the vulnerability.

The retro from MegaETH's quoted post details additional issues, including a SaleUUID mismatch, Sonar rate limiting, and a rogue wave of deposits once resolved. The team intended to lift the cap in a controlled manner, but the exposed signatures allowed premature attempts.

Ultimately, the cap was raised early, filling to $500M before pausing. No funds were lost, but the experience was a "facepalm moment" as the comic puts it.

Lessons Learned and Retrospective

The comic wraps up with key takeaways:

1. Don't collect all signatures early: Hold back at least one until go-time to prevent premature execution.

2. Improve API design: Ideally, the Safe API should hide off-chain signatures from non-owners to mitigate this risk.

The MegaETH team expressed sympathy for ops teams, acknowledging that such slips happen in high-pressure environments. Their transparent retro outlines the compounded technical issues, emphasizing that while assets were never at risk, user experience suffered.

For blockchain practitioners, this incident reinforces the importance of understanding tool intricacies. Tools like Safe are powerful, but their defaults require careful consideration, especially in public-facing operations like token raises.

Implications for Meme Tokens and Beyond

While MegaETH isn't strictly a meme token, the dynamics here mirror those in meme coin launches—where timing, fairness, and security are paramount. Meme projects often use similar multisig setups for treasury management or launches, making this a relevant warning. Exposed mechanics can lead to front-running or exploits, eroding trust.

To stay ahead, teams should audit their workflows, perhaps integrating custom scripts or alternative multisig solutions that prioritize privacy for pending signatures.

If you're building in crypto, incidents like this are gold for learning. Check out the full retro in the quoted post for more details, and follow discussions on X for ongoing insights into blockchain ops best practices.