Sandbox Bridge Hack Exposes Vulnerability in Cross-Chain Bridges
The Sandbox's cross-chain bridges on Base and BNB Smart Chain (BSC) were compromised, allowing an attacker to mint 14.9 billion unbacked SAND tokens.
This exploit occurred when the attacker manipulated the bridges' minting mechanism, which normally works by locking SAND on one chain and minting an equivalent amount on the destination network. However, in this case, no real backing was provided on the source chain, resulting in a large number of unbacked SAND tokens being created.
The affected tokens are not backed by any real value, and the Sandbox has stated that they will neutralize them once the exploited contract is frozen.
The company is currently preparing a compensation plan for eligible liquidity providers who held positions affected by the exploit. Users have been advised to avoid trading SAND on Base or BSC until the bridges are restored.