Pundi AI recently experienced a security breach resulting in the unauthorized minting of 1 million tokens. The incident was caused by a vulnerability in the token swap contract, which was exploited via a front-running attack during deployment. According to Pundi AI co-founder Danny Lim, the exploit led to the creation of tokens valued at approximately $6 million at the time of the incident. Through coordinated asset freezes and recovery efforts, the team successfully retrieved around 87% of the affected funds. The remaining loss—nearly $2 million—will be fully covered by the project team.