Yuga Labs Rescues $500,000 Worth of NFTs

Yuga Labs extracted 68 NFTs from vulnerable pools.

Yuga Labs conducted an emergency operation to extract 68 NFTs from vulnerable Flooring Protocol pools. The assets are temporarily held by the company and are planned to be returned after a resolution is agreed upon with the protocol developers, stated project CEO Michael Figge.

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 operation saved the following assets:

• 29 Bored Ape Yacht Club (BAYC);
• 2 CryptoPunks;
• 4 Mutant Ape Yacht Club (MAYC);
• 1 Bored Ape Kennel Club (BAKC);
• 1 Azuki and 2 Elementals;
• 26 Captains;
• 1 Moonbird;
• 2 Doodles.

Yuga Labs’ Vice President of Blockchain, known as 0xQuit, reported that the market value of the extracted tokens exceeds $500,000. The operation also involved a researcher by the nickname coffeedev and the platform GrailsOTC, which provided liquidity for the asset transfer.

A Flooring exploit today turned a dust amount of WETH into a near-infinite fpToken balance, allowing the attacker to drain Flooring pools.

This led to a followup opportunist scooping up tokens from the now depleted pools and exchanging them for underlying NFTs.

1/🧵

— Quit (@0xQuit) June 8, 2026

The vulnerability was found in the token accounting logic of the BT404 standard style. Due to integer underflow errors, attackers could create a “phantom ownership” state, gain an unlimited fpToken balance, and deplete liquidity pools.

Developers of Flooring Protocol acknowledged that the bug was missed during checks due to overly optimized bit-level code. The project team is currently working on a fix to allow Yuga Labs to safely return the assets to their rightful owners.

Market Context

The incident occurred amid stagnation in the non-fungible token segment. According to CoinGecko, the total market capitalization is $1.42 billion.

There is a high concentration of capital in the largest collections:

• CryptoPunks — $546.7 million;
• Bored Ape Yacht Club — $153 million;
• Pudgy Penguins — $74.7 million.

Back in January, Animoca Brands co-founder Yat Siu dismissed the notion of the NFT market’s demise and identified the driving force behind it.