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Decentralized finance (DeFi) protocol Makina Finance has fallen victim to a significant exploit, resulting in the loss of approximately $4.13 million worth of Ethereum. The attack, which saw 1,299 ETH drained in a single transaction, was further complicated by the intervention of a Miner Extractable Value (MEV) builder that front-ran the attacker, capturing a portion of the stolen assets.
Key Takeaways
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Makina Finance experienced a loss of $4.13 million in ETH due to a DeFi exploit.
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1,299 ETH were drained in a single transaction.
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An MEV builder front-ran the attacker, capturing some of the stolen funds.
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The stolen assets are currently held in two separate wallets, with no further movement detected.
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Makina Finance has not yet issued an official statement regarding the incident.
The Exploit Unfolds
The security breach occurred on January 20, 2026, targeting Makina Finance's DUSD/USDC Curve pool. On-chain data indicates the exploit was executed through a large swap on Uniswap V3, where approximately 4.24 million USDC was exchanged for 1,299.18 ETH. The transaction, confirmed on Ethereum block 24,273,362, was completed with a remarkably low gas fee of just over $0.50, suggesting a carefully orchestrated execution.
The funds moved through several protocols, including Curve and Aave, before settling on Uniswap. Blockchain data reveals that over $5.1 million in USDC passed through these transactions as part of the swap, with some liquidity routed through Curve's DAI and 3Crv pools.
MEV Bots Intervene
Adding another layer to the incident, an MEV builder bot identified by the address starting with 0xa6c2 intercepted the stolen ETH shortly after it arrived in the attacker's wallet. This MEV activity, occurring during the block-building stage, suggests the transaction was detected and acted upon before the primary attacker could move the funds further. While the MEV builder captured a small portion, approximately 0.13 ETH, it highlights the increasingly competitive and aggressive nature of trading on the Ethereum network.
Current Status of Stolen Funds
Following the exploit and the MEV builder's intervention, the stolen ETH remains split between two wallet addresses. One wallet holds approximately $3.3 million, while the other contains roughly $880,000. As of the latest reports, these funds have not been moved, mixed, bridged, or sent to any exchanges, providing a clear on-chain trail for investigators.
Makina Finance's Silence
Despite the significant financial loss and the public attention drawn by the exploit, Makina Finance has yet to release an official statement. The protocol's team has not acknowledged the incident on social media or provided any clarification on whether user funds were affected or if recovery efforts are underway. This silence is notable given the scale of the hack and the speed at which it occurred.
The incident serves as a stark reminder of the persistent vulnerabilities within the DeFi space, even with advanced protocols and security measures. Flash loan attacks continue to be a prevalent method for exploiting liquidity pools, and the involvement of MEV bots adds another complex dimension to on-chain security.
Sources
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Makina Finance Exploit Drains 1,299 ETH in Major DeFi Hack, The Crypto Times.
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MakinaFi Exploit Drains $4.1M as MEV Bots Front-Run Transactions, Coinfomania.
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