From 1299 ETH to 920 ETH: How Makina Recovered Stolen Funds Through a White Hat Mechanism

Makina security incident makes significant progress. After being hacked on January 20, this multi-chain DeFi execution engine announced on January 23 that it had recovered most of the stolen funds. MEV builders returned 920 ETH, accounting for 71% of the total exploited amount, with approximately 276 ETH still being recovered. This recovery process demonstrates the practical value of the white-hat safe harbor mechanism in DeFi risk management.

Complete figures on fund restitution

The flow of funds involved in this recovery is quite clear. During the vulnerability exploited on January 20, the hacker stole approximately 1299 ETH, of which 1023 ETH went to an MEV builder address. According to the SEAL white-hat safe harbor plan, this builder agreed to return the funds, deducting a 10% white-hat bounty. This means Makina actually recovered about 920 ETH, representing 71% of the original loss.

Effectiveness of the white-hat mechanism

The key to this recovery was the intervention of the SEAL white-hat safe harbor plan. This plan provides hackers with a legitimate channel for fund return, encouraging them to voluntarily return funds by paying a bounty rather than facing legal risks. The results show that this mechanism is quite effective.

The MEV builder chose to return the funds instead of continuing to hide them, reflecting two realities: first, the increasing technical ability to trace on-chain funds; second, that white-hat bounties offer a rational exit option. The 920 ETH returned signifies a shift in DeFi security governance from passive defense to active negotiation.

Outlook for remaining funds recovery

However, the incident is not fully over yet. About 276 ETH has been transferred to a Rocket Pool validator address and is still under recovery. This portion accounts for 21% of the total loss, relatively small but still worth attention. Makina’s official statement indicates that the current priority is to fully recover this part of the funds, and any recovery plan and timeline will be announced when feasible.

From a technical perspective, the transfer of these funds to a validator address may indicate that the attacker is attempting to conceal funds through staking. However, in the face of on-chain transparency, such concealment methods only delay rather than prevent recovery.

Lessons for DeFi security

This incident offers several valuable insights. First, the white-hat mechanism can indeed effectively incentivize fund return; compared to full-on pursuit, negotiation is more efficient. Second, although the vulnerability in the DUSD/USDC pool caused losses, the impact was limited to liquidity providers, highlighting the importance of risk isolation. Furthermore, rapid handling and transparent communication help maintain user confidence.

Summary

Makina’s recovery demonstrates the increasing maturity of the DeFi ecosystem in responding to security incidents. From the exploitation of 1299 ETH to the successful return of 920 ETH, the white-hat mechanism played a crucial role. The remaining 276 ETH is still being recovered, but the overall situation is under control. This case shows that in the transparent world of DeFi, concealed funds will eventually be exposed, and voluntary return may be a more rational choice. For the industry as a whole, this also affirms the practical value of white-hat protocols in risk management.