SAND Bridge Exploit Creates $49 Billion in Fake Tokens on Base and BSC

The Sandbox (SAND) experienced a cross-chain security incident that resulted in the creation of unbacked SAND tokens on Base and BNB Smart Chain.

According to Blockaid, a blockchain security firm, approximately $49 billion worth of fake SAND was minted across over 400 transactions. The affected networks are not yet bridged, but SAND on Ethereum and Polygon remains unaffected.

The incident occurred due to a bug in the Sandbox bridge infrastructure, which allowed attackers to create SAND tokens without the necessary supporting assets.

The project has taken immediate action by shutting down all activity related to bridging and unbridging between the two networks. This means that SAND currently held on Base and BSC is isolated and cannot be transferred back through the bridge or redeemed via affected cross-chain routes.

The Sandbox warned users not to purchase, sell, or trade SAND on either Base or BSC due to liquidity concerns on those networks.