Yuga Labs recently conducted a whitehat operation to rescue Ethereum NFTs from an exploit in the Floor Protocol, salvaging assets valued at approximately $570,000. The exploit allowed attackers to gain an unlimited balance of μTokens, draining NFT pools. Notably, the rescue included 29 Bored Apes and 2 CryptoPunks, highlighting the significant impact of this intervention. This occurred after Floor Protocol had ceased operations in the previous year, underlining the continued vulnerabilities in the defunct platform. Yuga Labs’ efforts ensured the safety and eventual return of these NFTs to their rightful owners.
Floor Protocol allowed NFTs to be deposited into pools to gain liquidity via μTokens. These μTokens could be traded on a decentralized exchange or burned to redeem the NFT, providing a mechanism for liquidity and redemption within the protocol. Floor Protocol sunset its operations last year.
The exploit enabled attackers to convert a small portion of wrapped Ethereum (wETH) into a nearly infinite μToken balance, which allowed draining of NFT pools. That nearly infinite μToken balance permitted attackers to extract assets directly from those pools that held deposited NFTs. The exploit specifically involved conversion of wrapped Ethereum into μTokens as the method used to alter token balances and drain liquidity.
Yuga Labs led a whitehat rescue operation after discovering an exploit in Floor Protocol. “After digging deeper, we found another related exploit path that could be used against additional vulnerable Flooring pools,” said pseudonymous Yuga Labs VP of Blockchain 0xQuit on X. “The goal was to remove exposed NFTs from vulnerable Flooring pools before another malicious actor could exploit the same paths and extract them first,” they added.
Yuga Labs holds more than 60 rescued NFTs in custody and is working with Floor Protocol developers to return the assets to their owners. “Thanks to this move, we were able to save dozens of assets from impacting the market and Flooring protocol tokens from being compromised,” Yuga Labs CEO Michael Figge posted on X. The operation was conducted following discovery of the exploit and involved identifying vulnerable Flooring pools for asset removal.
Bored Ape floor price exceeds $15,000, and CryptoPunks floor minimum is around $55,000. Both collections are among the NFT collections referenced in the rescue of assets affected by the Floor Protocol exploit. These floor-price figures are presented as current market metrics associated with the collections involved in the reported incident. The stated floor prices are taken from the report on the affected NFTs.
NFT market volumes showed 2022 daily Ethereum NFT sales above $100 million per day. The highest day in 2026 reached $32.3 million in Ethereum NFT sales volume. These numbers are presented as reported figures for daily Ethereum NFT sales on specific days in 2022 and 2026. The reported volume figures are included to provide a market context for the affected assets.
Yuga Labs conducted a whitehat rescue operation that recovered valuable NFTs affected by the Floor Protocol exploit, removing those assets from vulnerable pools and securing them in company custody. The company holds the rescued NFTs and is collaborating with Floor Protocol developers to identify owners and return the assets to their rightful owners through coordinated processes.
