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.