Makina Finance loses $4.2 million as the attackers drained its DUSD Curve pool.
By Wahid Pessarlay
Editor Julia Sakovich
Updated
2 mins read
Makina Finance, a decentralized finance execution engine based on Ethereum, was exploited early on Tuesday, Jan. 20. Nevertheless, this protocol that automates advanced risk-managed investment strategies, like yield farming, for asset managers, AI agents, and funds, still recorded strong performance.
Multiple blockchain security platforms, including TenArmor, flagged the attack on X.
🚨TenArmor Security Alert🚨
Our system has detected a suspicious attack involving #Makina Finance @makinafi on #ETH, resulting in an approximately loss of $4.2M.
It appears that the Makina's DUSD/USDC CurveStable pool was drained!
Attack transaction: https://t.co/wvTPzkMLP1… pic.twitter.com/qUaDF5mxWA
— TenArmorAlert (@TenArmorAlert) January 20, 2026
TenArmor wrote that Makina Finance lost roughly $4.2 million to hackers draining its DUSD/USDC CurveStable liquidity pool.
This technically means that anyone providing liquidity to the affected Curve pool is exposed. Normally, liquidity providers share losses when a pool is drained.
Almost three hours after TenArmor flagged the hack, Makina Finance posted on X that only the DUSD Curve pool had been affected and advised the liquidity providers to withdraw their assets.
Gmak, early this morning we received reports regarding an incident with the $DUSD Curve pool
At this stage, the issue appears to be isolated to DUSD LP positions on Curve. There is currently no indication that other assets or deployments are affected.
Underlying assets held in…
— Makina (@makinafi) January 20, 2026
The cross-chain DeFi execution engine added that the “security mode has been activated across all Machines” until the issue is addressed.
When a protocol activates security mode across all contracts, it means that the team is still investigating and trying to prevent further damage.
Despite the multi-million-dollar hack, Makina Finance recorded notable gains.
According to data from DeFiLlama, Makina’s total value locked rose by 20.5% over the past 24 hours, reaching $100.47 million.
The protocol, which was launched in late September 2025, also collected just over $128,000 in fees over the past day, marking a new all-time high.
It’s essential to note that anyone interacting with Makina Finance should exercise caution until the team’s investigation is complete, regardless of the platform’s gains.
In 2025, the total amount of crypto assets lost to fraudulent actors reached $4 billion, with hacks taking up just over $3 billion. Bybit’s $1.5 billion hack led the charts as the biggest loss of the year.
Most recently, on Jan. 10, attackers stole $282 million from multiple crypto wallets and have already sent $63 million to Tornado Cash, a popular digital asset mixer.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Wahid has been analyzing and reporting on the latest trends in the decentralized ecosystem since 2019. He has over 4,000 articles to his name and his work has been featured on some of the leading outlets including Yahoo Finance, Investing.com, Cointelegraph, and Benzinga. Other than reporting, Wahid likes to connect the dots between DeFi and macro on his newsletter, On-chain Monk.
