On August 10, 2021, Punk Protocol was exploited for $8.95M when attacker used delegatecall to rerun unguarded Initialize function, changing forge address to gain withdrawal control. White-hat frontran and recovered ~$5M, keeping $1M as finder's fee.

Punk Protocol, the decentralized annuity protocol, stated that it encountered an attack during the fair launch process, causing a loss of 8.9 million US dollars. Later, the team recovered another 4.95 million US dollars and transferred it to a secure wallet. The Punk Protocol team stated that the attacker found a critical loophole in the investment strategy and extracted more than 8.9 million U.S. dollars of three stable currency assets (USDC, USDT, DAI) from the Forge-CompoundModel module, but a white hat hacker noticed The attacker's intent was reached, so a transaction was executed, which was able to recover $4.95 million. The lost funds have been transferred to the Ethereum currency mixing platform Tornado.cash, so it is difficult to keep track of them.