WETH (WETH)

Someone turned a few dollars of crypto into an infinite balance and started draining Bored Apes and CryptoPunks out of a protocol.

The protocol is Flooring, where you lock an NFT in a contract and get tokens pegged to it 1:1.

Today an attacker deposited a tiny bit of WETH and broke that peg, tricking the contract into thinking he owned far more than he did until a second flaw gave him a near infinite token balance.

He drained the pools with it, then started swapping the worthless tokens back for the real NFTs locked inside, everything from Bored Apes and CryptoPunks to Azukis and Doodles, all sitting in a protocol that had been winding down for months.

That's when Yuga Labs stepped in. The company behind Bored Apes watched its own NFTs getting drained and ran a counter operation with one of its blockchain leads handling the onchain recovery

They saved 68 NFTs worth over $500,000, including 29 Bored Apes and 2 CryptoPunks, now in safe custody and heading back to their owners.

Some didn't make it back but you almost never see a save like this. Usually the money's just gone.

Flooring Protocol Exploit TLDR:

- An exploit on Flooring Protocol used a bit-packed token ID collision to create "ghost ownership", tricking the protocol into thinking an attacker owned NFTs they didn't

- This caused balance underflows, giving the attacker near-infinite fpTokens, which they dumped to drain liquidity pools

- A follow-up opportunist then scooped cheap tokens from the wrecked pools and redeemed them for real NFTs

- @coffeedev discovered a second related exploit path that put even more high-value collections (BAYC, CryptoPunks) at risk

- $500,000+ in NFTs saved: 29 BAYC, 4 MAYC, 2 CryptoPunks, 1 Azuki, 2 Elementals, 26 Captains, 1 Moonbird, 2 Doodles, 1 BAKC

- Assets are now in Yuga Labs custody, will be returned to rightful owners in coming weeks

- Exploiters still hold some NFTs, situation is NOT fully resolved

this was some legendary stuff from @0xQuit

saving a huge amount of nfts from getting floored https://t.co/oPNNMb2S3U