Flooring Protocol (2026) — Crypto Hack
Funds LaunderedNFT floor price manipulation drained $10.5M from lending protocol
Summary
NFT floor price manipulation drained $10.5M from lending protocol
How It Was Compromised — Smart Contract Exploit via Price oracle manipulation in NFT-backed lending protocol. Attacker artificially inflated floor prices of collateral NFTs, borrowed against inflated values, then abandoned loans.
On June 8, 2026, Flooring Protocol was exploited for $10.5 million through price oracle manipulation. The protocol allowed users to borrow against NFT collateral using floor price oracles. The attacker identified a vulnerability where they could temporarily inflate floor prices through wash trading and manipulated listings. With artificially high collateral values, the attacker borrowed significantly more than the NFTs were worth, then allowed the loans to default, leaving the protocol with underwater collateral.
Fund Flow & Laundering Analysis
Borrowed ETH was immediately sent to Tornado Cash. NFT collateral was sold through Blur and OpenSea at actual market prices, with proceeds consolidated and mixed. The attacker used multiple wallets to execute wash trades and obscure the manipulation. The combination of DeFi lending and NFT markets created a complex laundering trail that has made recovery difficult.