White Hat Hackers Recover Over $500K in NFTs After Flooring Protocol Exploit

More than $500,000 worth of non-fungible tokens (NFTs) have been recovered after a security exploit targeted Flooring Protocol, putting several high-value digital collectibles at risk. The recovered assets include NFTs from leading collections such as CryptoPunks and Bored Ape Yacht Club (BAYC).

Yuga Labs CEO Michael Figge confirmed that 68 NFTs were successfully secured by developers associated with the company. The assets are currently being held safely and will be returned to their owners once a recovery plan is completed.

High-Value NFT Collections Affected

According to Yuga Labs blockchain executive 0xQuit, the rescued NFTs were valued at more than $500,000. Despite weaker market conditions across the NFT sector, major collections continue to hold significant value. CryptoPunks currently maintain a floor price of roughly 32.7 ETH, while BAYC NFTs trade near 9.16 ETH.

Flooring Protocol Was Already Scaling Back Operations

The exploit occurred as Flooring Protocol was already reducing parts of its consumer-focused NFT business. In 2025, the platform advised users to redeem NFTs and exit fractionalized positions amid operational and liquidity challenges.

NFT Market Value Declines From Recent Highs

The broader NFT market has cooled in recent months. Total NFT market capitalization climbed near $2 billion earlier this year before falling to around $1.4 billion. However, CryptoPunks and BAYC remain the largest NFT collections by market value, highlighting continued demand for established digital assets.