Sandbox Bridge Exploit Allows Unbacked Token Mint

The Sandbox's cross-chain bridge on Base and BNB Smart Chain (BSC) was exploited, allowing an attacker to mint unbacked SAND tokens. The project estimated the direct impact at less than 0.01% of the token's 3 billion supply.

According to blockchain forensics account BlockWatchdog, the attacker withdrew approximately 14.75 million SAND from the Ethereum adapter in under one minute. Token sales generated about 80 ETH, valued at roughly $675,000 at the time of the transactions.

The Sandbox disabled transfers involving both networks while keeping Ethereum and Polygon SAND unaffected. Upbit and Bithumb halted SAND deposits and withdrawals after detecting a possible security incident.

The project plans to compensate eligible liquidity providers based on balances recorded before the attack.