Yuga Labs recovers $500K in NFTs after Flooring Protocol exploit

Yuga Labs deployed a defensive contract that used the same bug to move blue-chip NFTs to safety before the attacker could claim them. The contract mirrored the exploit's mechanics, minting fpTokens through the broken accounting logic and pulling the NFTs from exposed pools.

All 68 NFTs are now in Yuga Labs' custody. The company said it will return them to their original owners once the protocol's vulnerability is patched.

The bug is a basic accounting error, the kind of flaw that audits are designed to catch before deployment. Security researchers pointed to the incident as a reminder that NFT DeFi infrastructure remains early-stage. Yuga Labs, which acquired the CryptoPunks IP from Larva Labs in 2022, has a direct stake in protecting its holders. Its response came within hours of the exploit being detected.