White hats rescue $500K in NFTs after Flooring exploit
Yuga Labs-affiliated developers rescued 68 NFTs from an exploit at Flooring Protocol, protecting assets from collections including Bored Apes and CryptoPunks. Yuga Labs CEO Michael Figge said the recovered NFTs are now in company custody and will be returned after a resolution is finalized. Yuga’s blockchain VP, 0xQuit, estimated the rescue covered more than $500,000 in NFT value. The incident hit a protocol that was already winding down its consumer NFT services. Flooring Protocol had told FPv2 token holders to redeem NFTs and exit fractional positions before an October 2025 sunset deadline. Former CEO FreeLunchCapital said liquidity problems and management changes left parts of the NFT business unattended, and that assets kept on the platform to help users exit positions became a main target of the exploit. Despite the broader market slump, CryptoPunks and BAYC remain the largest NFT collections by market cap, and the total NFT market still sits in the low billions of dollars.
