Makina Finance Suffers $5 Million Stablecoin Pool Exploit: CertiK

Makina Finance, a DeFi execution platform, has confirmed a major exploit in which approximately $5 million was drained from one of its stablecoin pools. The attack leveraged a 280 million USDC flash loan to manipulate the protocol's oracle and execute the theft according to reports. The firm has not yet released an official statement confirming the breach on its primary communication channels as reported.

Blockchain security firm CertiK first flagged the exploit, identifying the manipulation of the DUSD/USDC Curve stablecoin pool. The attacker borrowed 170 million USDC to manipulate pricing data and then traded 110 million USDC against the pool to drain the funds according to details.

Following the exploit, an MEV builder captured the majority of the stolen assets. According to CertiK, $4.14 million was seized by this entity, highlighting the role of MEV infrastructure in modern DeFi attacks.

How Did the Attack Occur?

The exploit involved a sophisticated execution using flash loans and oracle manipulation. The attacker executed a sequence of swaps across multiple protocols, including Curve and Aave, to exploit pricing discrepancies and drain funds as detailed. This method is common in DeFi exploits, where attackers use liquidity pools and oracle data to manipulate asset valuations according to analysis.

The attack occurred at 03:40:35 UTC on January 20, 2026, and involved a swap on Uniswap V3, where 4.24 million USDC was exchanged for 1,299.18 ETH, valued at about $4.13 million according to transaction data. The transaction was confirmed on Ethereum block 24,273,362 and required only $0.50 in gas fees, suggesting a carefully planned execution as confirmed.

What Happened to the Stolen Funds?

The stolen assets were traced to two wallet addresses. One held about $3.3 million, while the other contained roughly $880,000. The funds have not been mixed or moved to exchanges, giving investigators a chance to track the funds according to tracking.

According to PeckShield, the attacker was front-run by an MEV builder during the transaction execution. This means that the MEV builder captured the funds immediately after the swap, preventing the attacker from moving the assets freely as reported.

What Are Analysts Observing?

Analysts are closely monitoring the situation, particularly the lack of a formal response from Makina Finance. The firm has not yet issued an official statement confirming the exploit or outlining plans for recovery as stated.

Security firms have recommended users to revoke contract permissions and avoid interacting with MakinaFi contracts until further notice according to security advice. This advice reflects the growing awareness of DeFi risks and the need for users to take proactive steps to protect their assets as observed.

The attack is part of a broader trend of DeFi exploits. According to Chainalysis, cryptocurrency theft totaled over $3.41 billion in 2025, with North Korea being the most prolific threat actor according to analysis. This context underscores the ongoing vulnerabilities in DeFi protocols and the importance of robust security measures as highlighted.

Broader Implications for DeFi Platforms

Makina Finance is one of several DeFi platforms facing significant security challenges. Its DUSD token is designed to generate yield through on-chain strategies, but this exploit highlights the risks associated with complex financial systems as noted.

The incident also draws attention to the role of MEV builders in modern DeFi attacks. These entities can front-run transactions and capture value before attackers can act, further complicating efforts to track and recover stolen assets according to security analysis.

Investors are advised to remain cautious and to monitor the situation closely. The lack of a formal response from Makina Finance has raised concerns about transparency and accountability in the DeFi space as reported.

As the investigation continues, the DeFi community will be watching for updates on recovery efforts and protocol improvements. The broader market may also react to the news, given the recent surge in DeFi-related security breaches as observed.

What Comes Next for DeFi Investors?

Investors who hold assets on DeFi platforms are encouraged to review their positions and consider alternative strategies for asset management. The incident highlights the need for robust risk management and the importance of diversifying investments according to recommendations.

Security firms have emphasized the importance of regular audits and proactive security measures. Platforms like Mutuum Finance are taking steps to improve security by integrating Chainlink oracle feeds and undergoing independent audits as reported.

The DeFi ecosystem continues to evolve, and the recent exploit underscores the need for continuous innovation in security protocols. As more platforms enter the market, the importance of transparency and accountability will only grow as stated.