Yuga Labs developers recover $500K in NFTs from Flooring Protocol exploit

Developers affiliated with Yuga Labs rescued 68 non-fungible tokens from Flooring Protocol after an exploit placed high-value NFT collections at risk, Yuga Labs CEO Michael Figge said Monday. The recovered NFTs, drawn from collections including Bored Ape Yacht Club and CryptoPunks, are now in the company's custody and will be returned to their original owners once a return process is finalized, Figge said.

0xQuit, Yuga's pseudonymous vice president of blockchain, said the recovery covered more than $500,000 worth of NFTs. At the time of the incident, CryptoPunks had a floor price of around 32.7 ETH ($54,612), while Bored Ape Yacht Club NFTs sat around 9.16 ETH, according to CoinGecko.

The incident affected a protocol that was already winding down parts of its consumer-facing NFT business. Floor Protocol said in September 2025 that its Web3 consumer services were entering sunset mode and advised FPv2 token holders to redeem their NFTs and exit fractional positions before Oct. 15, 2025.

Former CEO FreeLunchCapital said the protocol faced liquidity issues and organizational changes that left parts of the NFT division unmanaged. FreeLunchCapital said they continued providing liquidity and kept some of their own NFT assets on the platform to help users exit positions, adding that those assets became a primary target during the exploit. FreeLunchCapital said they are in talks with the parent group behind the management team to regain control of the protocol.

The broader NFT market remains far below its peak. CoinGecko data showed overall NFT market capitalization climbed to around $2 billion in late April and early May before falling back toward $1.4 billion by Monday. NFT Price Floor data showed CryptoPunks and Bored Ape Yacht Club remained the two largest NFT collections by market capitalization, with CryptoPunks at about 339,400 ETH (around $560 million) and BAYC at around 90,590 ETH ($150 million).