Yuga Labs CEO Michael Figge confirmed the team completed a whitehat operation to rescue dozens of at-risk NFTs from an exploit discovered in Flooring Protocol. The intervention successfully secured 68 high-value digital assets, preventing their liquidation in vulnerable liquidity pools. The recovered bundle includes 29 Bored Ape Yacht Club (BAYC) tokens, 4 Mutant Apes, and 2 CryptoPunks.
We’ve just finished a whitehat operation on an exploit discovered in Flooring Protocol.
Now safely in the custody of Yuga Labs:
29 bored apes
4 mutant apes
1 bakc
2 cryptopunks
1 azuki
2 elementals
26 captains
1 moonbird
2 doodles@0xQuit, our VP of Blockchain recovered the…— figge (@mfigge) June 8, 2026
The Flooring Protocol exploit involved an attacker manipulating the protocol’s packed ownership logic using a crafted token ID, which created a ghost ownership state and triggered underflows. This allowed the attacker to obtain a near-unlimited fpToken balance and drain liquidity pools of their underlying NFTs. Subsequently, another party acquired the depleted tokens to redeem and sell the extracted NFTs.
Rescue operation and community response
The rescue mission began after developer @coffeedev identified amplified risks to the BAYC and CryptoPunks pools following an initial exploit raid. Yuga Labs’ Vice President of Blockchain, @0xQuit, recovered the assets after the firm fronted capital via GrailsOTC to extract the tokens and avert a broader market impact.
Yuga Labs affiliates conducted a defensive rescue using the same bug class, safely extracting 29 BAYC, 4 MAYC, and other NFTs worth over $500k for return to owners while warning against further deposits.
The response from the NFT community has been largely positive, with many stakeholders crediting Yuga Labs for acting swiftly to contain the exploit. However, some observers remain cautious, raising questions about protocol security and the risks of unmaintained platforms. Overall, sentiment suggests that the intervention prevented more severe losses and broader market disruption.
NFTs face market obstacles as platform shutdowns continue
The Flooring Protocol hack happened when the NFT world was already dealing with bigger problems, like platforms shutting down. For example, in April 2026, the digital art platform Foundation closed after its main buyer, Blackdove, chose not to complete a purchase.
In January 2026, the social NFT platform Rodeo also closed because it could not grow steadily. These recent shutdowns show the money and management problems that decentralized asset platforms face as funds in the NFT market become more scattered.
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