Yuga Labs rescues 68 NFTs from Flooring Protocol exploit

Yuga Labs, the company behind several major NFT collections, announced on June 8 that it had conducted a whitehat security operation to rescue 68 valuable digital assets at risk from an exploit in the decentralized finance platform Flooring Protocol. The operation, which involved deploying company funds, successfully secured NFTs including Bored Apes, Mutant Apes, CryptoPunks, Azuki, and others now held in Yuga Labs’ custody.

The effort was launched after the company’s security team identified a vulnerability in Flooring Protocol that had already been exploited. Yuga Labs CEO Michael Figge stated the team acted to prevent further attacks after discovering a related, broader risk path that exposed additional asset pools. The company’s Vice President of Blockchain, 0xQuit, led the on-chain recovery, which was funded by Yuga Labs’ over-the-counter trading desk, GrailsOTC. Figge said the company plans to work with the protocol’s developers to return all 68 NFTs to their original owners once a verified technical fix is deployed.

A technical explanation provided by 0xQuit described a sophisticated flaw in the protocol’s core accounting logic. An attacker was able to use a negligible...