Sandbox Compensates Users for Exploited SAND Tokens Amid Worsening Security Threats

The Sandbox has begun accepting claims from users who lost bridged SAND tokens in an August exploit. The move to compensate affected users comes as the crypto market is grappling with new security challenges.

In August, attackers exploited vulnerabilities in the SAND token contracts on Base and BNB Smart Chain, causing a loss of approximately $697,000 worth of tokens. The Sandbox has since announced that it will provide a full 1:1 refund paid in SAND on Ethereum to users who held bridged SAND before the exploit.

The process for filing claims is straightforward: individual wallet holders need only submit a claim through The Sandbox's portal, while users who held the token on an exchange do not need to take any action. The affected tokens were not touched on Ethereum or Polygon, and the Ethereum supply still has 3 billion tokens.

Cronos, another project that suffered an exploit in August, is further along in its recovery. An attacker inflated the TONIC token by around 100 times in 20 minutes, causing $75 million to be exposed. However, only about $6 million reached Ethereum before the chain stopped, and Cronos has since come back online.

Meanwhile, hardware wallet makers Ledger and Trezor are warning of a new wave of bugs that is arriving faster than defenders can patch. Charles Guillemet, chief technology officer at Ledger, urged researchers to report vulnerabilities privately and settle on a fixed timeline first, citing 90 days as a common default.