Sandbox Hack: $718M Worth of Unbacked SAND Tokens Minted

The Sandbox's SAND token has been affected by a cross-chain bridge exploit that occurred on Base and BNB Smart Chain. According to security firm PeckShield, an attacker minted 14.9 billion unbacked SAND tokens across two wallet addresses, translating to approximately $718 million.

Blockaid, another blockchain security firm, clarified that the issue involved The Sandbox's SAND Omnichain Fungible Token on Base. They denied blame against LayerZero, stating that the problem was with the Base SAND minting system.

The project team downplayed the hack, saying it has identified and 'contained' the vulnerability. They stated that the impact is minimal, representing less than 0.01% of the total SAND token supply. SAND tokens on Ethereum and Polygon are not affected, and no user wallets were compromised.