Sandbox Bridge Hack Mints 14.9B Unbacked SAND Tokens, Coinbase Delists Futures

The Sandbox's metaverse platform was hit by an exploited bridge that let attackers mint nearly 14.9 billion unbacked SAND tokens on Base and BNB Smart Chain (BSC), prompting an immediate shutdown.

The exploit, which occurred on August 21, allowed the attacker to create SAND tokens with no real backing on both networks, highlighting a vulnerability in the platform's cross-chain bridges.

The Sandbox disabled bridging on Base and BSC as soon as the exploit was detected, cutting off the attacker's ability to move the fabricated tokens further.

The company is now preparing a compensation plan for eligible liquidity providers who held positions affected by the unbacked minting.