Yuga Labs recovers 68 NFTs worth $500K from Flooring

Yuga Labs-affiliated developers recovered 68 non-fungible tokens worth more than $500,000 from Flooring Protocol after an exploit targeted fractionalized NFT positions and liquidity pools. The assets include pieces from Bored Ape Yacht Club and CryptoPunks and are being held by Yuga Labs pending a resolution on returns.

Yuga Labs CEO Michael Figge announced Monday that the recovered tokens are in the company’s custody and will be returned once a remediation plan is finalized. Yuga’s vice president of blockchain, known as 0xQuit, reported the haul exceeded $500,000 in value and named high-profile items among the recovered pieces.

Flooring Protocol had already begun winding down parts of its consumer-facing NFT business. In September 2025 the project advised FPv2 token holders to redeem NFTs and exit fractional positions by Oct. 15, 2025. Former Flooring CEO FreeLunchCapital attributed the exploit to liquidity shortfalls and organizational changes that left parts of the NFT division unmanaged. FreeLunchCapital added, “Those assets became a primary target during the exploit,” and said its team had kept some of its own NFTs on the platform to help users exit positions. The group is in talks with the parent organization behind the management team to regain control of the protocol.

The recovered tokens were moved into Yuga custody to prevent further loss while stakeholders negotiate how to return assets to rightful owners. Figge indicated the company will release the tokens after an agreed solution is in place.

Market data show some collections retain high floor prices despite a broader market cooldown. At the time of the recovery, CryptoPunks had a floor near 32.7 ETH (about $54,600) and Bored Ape Yacht Club had a floor near 9.16 ETH. CryptoPunks and BAYC remained the largest collections by market capitalization, with CryptoPunks around 339,400 ETH (about $560 million) and BAYC near 90,590 ETH (about $150 million). Overall NFT market capitalization rose to roughly $2 billion in late April and early May before declining to about $1.4 billion by Monday.

Industry participants, fractional holders and remaining Flooring managers are awaiting clearer coordination among the protocol’s teams, FreeLunchCapital and affected projects to determine next steps. The incident involved operational lapses and targeted exploitation of fractional positions during the platform wind-down.