MakinaFi Hit by $4.13M ETH Heist After Smart Contract Breach

Key Highlights:

• MakinaFi suffered an exploit where it has lost 1,299 ETH.
• The stolen ETH were swapped to USDC.
• The swapped USDC coins have been stored in two different wallets.

MakinaFi, a DeFi execution engine, has suffered an exploit where it has lost 1,299 ETH which were worth almost $4.13 million. The incident was reported by blockchain security firm PeckShield today, January 20, 2026, through social media platform X .

According to PeckShield, the hacker’s transactions were frontrun by an MEV builder, a strategy that is very commonly seen on Ethereum where transactions are reordered for profit.

How the Exploit Unfolded

According to PeckShield, on-chain data indicates that the attacker exploited a weakness in MakinaFi’s execution logic, which allowed them to withdraw funds from the protocol.

As mentioned above, during the attack, the hacker’s transactions were frontrun by an MEV (Maximal Extractable Value) builder at address 0xa6c2… This means the transactions were reordered within Ethereum blocks to gain priority, a common occurrence in Ethereum’s highly competitive transaction ordering environment.

According to Etherscan, once 1,299 ETH were drained from the protocol, they were swapped for $4.24 million in USDC on Uniswap v3. With this move the attacker was able to secure the value of the stolen funds and avoid ETH price volatility.

Where are the Funds Now?

After the exploit, the stolen ETH has been split between two wallet addresses as of now. Around $3.3 million is held in one wallet (0xbed2…dE25) and the rest of $880,000 is held in another one (0x573d…910e). Both of these wallets are now being monitored via public and blockchain analysis.

Current Status

As of now, the funds are secured in the above said wallets. No official statement has been issued by the DeFi execution engine. The exploit is another example that highlights the persistent security risks that exist in DeFi protocols, particularly those related to the execution mechanisms and MEV exposure.

About MakinaFi

MakinaFi is a DeFi execution engine that allows complex multi-step transactions to be executed in a single flow. It focuses on automation, routing and efficient execution.

The DeFi execution engine has also completed its Initial DEX Offering (IDO) on the Legion platform in November 2025 and it also states that the platform underwent six security audits by different auditing firms between July and November 2025 as a part of its development and security efforts.

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