Yuga Labs has recovered 68 non-fungible tokens valued at more than $500,000 from the Flooring Protocol, after an accounting bug left the assets exposed. The recovery, confirmed this week, includes two CryptoPunks — among the most recognizable NFTs in the ecosystem.
How the bug worked
The accounting error created a mismatch between what the protocol believed it held and what was actually in its liquidity pools. That gap allowed the NFTs to be withdrawn improperly. Yuga Labs moved quickly to secure the assets once the issue was identified.
What was recovered
Beyond the two CryptoPunks, the batch includes 66 other NFTs from Yuga Labs' portfolio. The total value, pegged at over half a million dollars, reflects the current floor prices of the affected tokens. The company did not disclose whether any assets were permanently lost before the recovery.
The Flooring Protocol's role
Flooring Protocol is a platform that lets users deposit NFTs into pools to earn yield. The bug appears to have been in the protocol's internal accounting system, not in the underlying smart contracts. The incident is the latest reminder that even well-audited DeFi and NFT infrastructure can have logic errors that expose user funds.
Yuga Labs has not said whether it will pursue further action or if the protocol has since patched the vulnerability. The company declined to comment on the specifics of the recovery process.
