Yuga Labs successfully secured approximately $570,000 worth of non-fungible tokens after a vulnerability was exploited on Floor Protocol. The team behind the Bored Ape Yacht Club intervened to retrieve the digital assets before malicious actors could access them.
During the whitehat operation, 29 Bored Apes and two CryptoPunks were among the rescued NFTs. Yuga Labs now holds these assets while collaborating with Floor Protocol developers on a return strategy.
The exploit was uncovered by Yuga Labs’ vice president of Blockchain, 0xQuit, who noticed suspicious activity on Floor Protocol. Originally halted last year, Floor Protocol retained some NFT pools containing deposited assets. The platform allowed users to deposit NFTs and receive fungible μTokens, which could be traded or burned to reclaim the original NFT. The exploit created a channel to siphon these pools.
0xQuit detailed on X that an initial exploit turned a small amount of wETH into a massive μToken balance, enabling the draining of pools. Upon deeper inspection, a second exploit path was discovered that could target additional vulnerable pools. Yuga Labs promptly moved the exposed NFTs from these pools to prevent further theft, framing the action as a protective measure.
The rescued items include high-value Ethereum collections, with Yuga Labs currently in control. They plan to coordinate with Floor Protocol developers to finalize the return process. CEO Michael Figge acknowledged the move, stating it saved dozens of assets and prevented market disruption.
This incident highlights lingering risks within defunct platforms like Floor Protocol, despite the overall NFT market cooling since its 2022 peak. The rescue effort underscores the importance of proactive security measures in the crypto space.