Yuga Labs Rescues 68 NFTs, Including Bored Apes, From Exploit

Yuga Labs developers successfully rescued 68 non-fungible tokens (NFTs), including 29 Bored Apes and 2 CryptoPunks, worth over $500,000 following an exploit targeting Flooring Protocol, a platform for NFT liquidity. The recovery operation, conducted on June 8, 2026, prevented further losses from an accounting vulnerability that attackers used to drain pools and claim high-value NFTs.

Flooring Protocol, an Ethereum-based platform, allows users to deposit NFTs into pooled smart contracts in exchange for fractionalized tokens. The exploit uncovered on June 8 exploited flawed accounting logic, enabling attackers to mint near-infinite fractional tokens using minimal funds. This allowed them to redeem significantly more value in NFTs than their deposits justified, putting collections like Bored Ape Yacht Club (BAYC) and CryptoPunks at risk.

Yuga Labs, the creators of BAYC and CryptoPunks, acted swiftly to recover the compromised assets. CEO Michael Figge confirmed the operation on social media, stating that the NFTs are now under secure custody until a solution is implemented. The company’s blockchain vice president, known pseudonymously as 0xQuit, emphasized the importance of the recovery, given the high-value assets involved.

Flooring Protocol's Vulnerability

The incident occurred amid Flooring Protocol’s operational wind-down. The platform had announced in September 2025 that its consumer-facing NFT services were being sunset, urging users to redeem tokens and exit fractional positions by October 15, 2025. However, liquidity issues and organizational challenges reportedly left parts of the protocol unmanaged, creating vulnerabilities that attackers exploited.

Former Flooring Protocol CEO FreeLunchCapital disclosed that they had maintained personal NFT assets on the platform to support liquidity during the wind-down. Unfortunately, those assets became a primary target in the exploit.

NFT Market Context

Although the NFT market is far from its 2021 peak, it still holds significant value. As of early June 2026, the overall NFT market capitalization hovers around $1.4 billion, according to CoinGecko. Collections like CryptoPunks and BAYC remain dominant, with market caps of approximately 339,400 ETH ($560 million) and 90,590 ETH ($150 million), respectively.

Floor prices for individual NFTs in these collections also reflect their enduring appeal. CryptoPunks trade at a floor price of 32.7 ETH ($54,612), while BAYC NFTs sit at around 9.16 ETH, despite broader market declines.

Implications for NFT Financialization

The Flooring Protocol exploit highlights critical risks in NFT liquidity platforms. Users who deposit NFTs into pooled smart contracts relinquish direct custody, relying on the security of the underlying code. When flaws like token inflation bugs or accounting errors surface, attackers can drain pools rapidly, as seen in this case. The incident underscores the need for robust audits and contingency plans in decentralized finance (DeFi) and NFT-focused protocols.

For now, Yuga Labs’ intervention has mitigated immediate damage, but the broader industry may need to rethink risk frameworks for NFT financialization. Flooring Protocol has yet to announce a timeline for resolving its vulnerabilities, leaving the future of its platform uncertain.