The MegaETH presale, a highly anticipated event that sold out within minutes, is now entangled in controversy following allegations of widespread Sybil activity. On-chain analysis has uncovered sophisticated methods used by participants to bypass established rules, raising significant concerns about fairness and the concentration of token ownership before the project's official debut.
Unveiling Coordinated Sybil Attacks
On-chain investigators, notably Bubblemaps, flagged suspicious coordinated activity involving more than 20 separate entities. Despite presale rules limiting participants to one wallet and a maximum bid of $186,000, data suggests numerous users allegedly employed multiple wallets to secure allocations far exceeding these limits. This strategic manipulation allowed certain participants to gain an unfair advantage, distorting the intended equitable distribution.
Exploiting KYC Verification Loopholes
The heart of the alleged bypass lies in the exploitation of KYC (Know Your Customer) verification processes. While Echo, the identity verification provider, mandated identity documents, some users reportedly circumvented this by submitting bids under various "legal identities." This involved using KYC documents from associates or relatives, enabling them to control multiple "verified" wallets. A stark example cited is wallet 0x9f5c, which allegedly distributed funds from Kraken to three new wallets, collectively pledging approximately $600,000 – nearly triple the permitted maximum.
Addressing the Discrepancy and Moving Forward
In response to these findings, both MegaETH Labs and Echo have been notified of the alleged misconduct and are expected to collaborate on mapping wallet linkages in greater detail. The Intel Desk is currently reviewing the investigation, with token holders having the option to vote on escalating the case for deeper scrutiny. This collective effort aims to uphold the integrity of the token distribution and ensure a more transparent and equitable process for all participants.
