Yuga Labs Executes White-Hat Rescue of High-Value NFTs Following Flooring Protocol Exploit

MakeCryippreferred on

Yuga Labs has successfully executed a timely white-hat rescue operation, securing dozens of high-value NFTs after a critical vulnerability was discovered in the Flooring Protocol. This proactive intervention prevented what could have been a significant loss for NFT holders, particularly within the Bored Ape ecosystem and other blue-chip collections.Yuga Labs CEO Michael Figge announced the development, revealing that the company acted swiftly to safeguard at-risk assets amid the exploit. The rescued NFTs, which include some of the most sought-after pieces in the NFT space, are now held securely in Yuga Labs’ custody while a long-term solution is implemented.

The recovered assets include:

• 29 Bored Apes (BAYC)
• 4 Mutant Apes (MAYC)
• 1 Bored Ape Kennel Club (BAKC)
• 2 CryptoPunks
• 1 Azuki
• 2 Elementals
• 26 Captainz
• 1 Moonbird
• 2 Doodles

These collections represent some of the most iconic and valuable names in the NFT space. As of now, Bored Ape Yacht Club (BAYC) is trading with a floor price of approximately 9.06 ETH (roughly $14,500 – $16,000 USD). CryptoPunks maintain a stronger floor around 32.7 ETH (about $52,000 – $57,000 USD). Mutant Ape Yacht Club (MAYC) trades at 1.32 ETH. Azuki is currently trading around 0.8 ETH range. Captainz (from Memeland) sits around 0.24 – 0.27 ETH. Moonbirds is at approximately 0.69 ETH, while Doodles is hovering near 0.45 – 0.50 ETH range. Overall, blue-chip NFTs like BAYC and CryptoPunks continue to command premium valuations despite market fluctuations, thanks to their strong community and cultural impact.

Figge credited Yuga’s VP of Blockchain, @0xQuit, for leading the technical recovery. He also thanked community researcher @coffeedev and the GrailsOTC trading desk for fronting funds and assets needed for the operation.

The rescue operation adds to a growing list of white-hat interventions across the crypto industry. Recently, security researcher 0xFlorent successfully recovered nearly $2 million worth of ETH that had remained inaccessible since the 2016 HongCoin ICO, demonstrating how ethical hackers continue to play a crucial role in protecting digital assets and recovering funds that might otherwise be lost forever.

The vulnerability stemmed from issues in the protocol’s smart contract accounting logic, particularly around packed ownership and indexing. An attacker was able to inflate their fpToken balance using a minimal amount of WETH, creating a “ghost ownership” state that allowed drainage of liquidity pools. A second opportunist later exploited the weakened pools to extract NFTs at undervalued prices.This incident came after an earlier smaller exploit on the same protocol, which raised concerns that higher-value collections like BAYC and CryptoPunks could also be at risk.

Rather than waiting for potential further losses, Yuga Labs proactively used a defensive method to withdraw the exposed NFTs from vulnerable pools. The company stated that the goal was to safeguard the broader market and protect user assets.Yuga Labs will now collaborate with the Flooring Protocol team on a permanent fix. Once resolved, the rescued NFTs will be returned to their rightful owners. Users have been advised not to deposit additional NFTs into the protocol until then.

Similar recovery-focused responses have become increasingly important as DeFi and NFT ecosystems mature. In a recent example, Renegade worked with security researchers to recover approximately $190,000 following an exploit targeting its Arbitrum-based dark pool, highlighting how rapid coordination between protocol teams and white-hat actors can significantly reduce user losses after security incidents.

This episode highlights the persistent security challenges in NFT-Fi and liquidity protocols. Yuga Labs’ rapid and responsible action has earned praise from the community, demonstrating strong stewardship over its ecosystem. However, some NFTs from the earlier exploit were not recoverable.