Sandbox Bridge Exploit Allows $49 Billion in Unbacked Tokens to be Minted

The Sandbox has temporarily halted bridging on Base and BNB Smart Chain due to an exploit that allowed attackers to mint unbacked tokens. The incident isolated SAND on both networks, with the project estimating the actual impact at less than 0.01% of its total supply.

The team said the underlying SAND locked on Ethereum remains secure and continues to back legitimate bridged tokens, while Ethereum and Polygon were not affected by the breach.

The attackers created roughly $49 billion in face-value SAND across more than 400 transactions, according to security firm Blockaid. The project has disabled transfers between the affected networks and Ethereum, preventing newly minted tokens from being redeemed or moved back toward collateral held on Ethereum.