Makina Finance experienced a significant exploit resulting in a loss of $4.13 million. According to NS3.AI, the incident involved MEV bots intercepting the hacker's transaction and redirecting the funds to addresses under their control, thereby preventing a complete loss. These MEV bots serve as an emergency crypto fund recovery mechanism, but their increasing influence and profit-driven motives pose governance challenges concerning fund custody and returns.
Efforts to address these issues include frameworks like Safe Harbor, which aim to formalize and regulate the process by pre-authorizing white hats and establishing clear terms. However, the adoption of such frameworks is still developing amid concerns over centralization and opaque custody.