A team of white hat hackers affiliated with Yuga Labs has rescued 68 non-fungible tokens worth over $500,000 after an exploit targeted the Flooring Protocol.
Yuga Labs CEO Michael Figge confirmed Monday that the recovered NFTs-including assets from Bored Ape Yacht Club and CryptoPunks-are now in the company’s custody and will be returned once a final solution is reached.
Yuga’s pseudonymous vice president of blockchain, 0xQuit, said the recovery covered more than half a million dollars in value.
The incident hit a protocol already winding down its consumer-facing business. Flooring Protocol announced in September 2025 it was sunsetting its Web3 services and advised users to exit fractional positions by mid-October.
Former CEO FreeLunchCapital said liquidity issues and organizational changes left parts of the NFT division unmanaged. They had kept personal assets on the platform to help users exit-making those holdings a prime target during the exploit. They are now in talks with the parent group to regain control.
Despite a sharp cooldown from its peak, the NFT market still holds billions in value. CoinGecko data shows overall market cap climbed to around $2 billion in late April and early May before slipping back to about $1.4 billion. CryptoPunks leads with a market cap of roughly 339,400 ETH ($560 million), while BAYC stands at around 90,590 ETH ($150 million).