Sandbox Repays SAND Holders After Bridge Exploit

The Sandbox has announced that it will repay eligible SAND holders who were affected by a bridge exploit on August 21. The attack, which was caused by a configuration flaw in the Base and BNB Chain contracts, resulted in the loss of approximately 14.7 million tokens worth around $700,000.

The company stated that payments will come from its treasury, and no new SAND will be minted to cover the loss. This means that the circulating and maximum supply of SAND will not increase as a result of the repayment.

Claims are expected to open within two weeks and remain open for another two weeks after that. The company noted that two centralized exchanges hold more than 72% of the affected balances, and those platforms will send replacement tokens directly to their customers.

The Sandbox has permanently retired the compromised bridge contracts and isolated the fake SAND supply, which cannot be bridged back or swapped for real SAND. This is not the first bridge hack of the year, with several other incidents reported in recent months, including a $36 million loss suffered by Humanity Protocol in June and a $24.15 million loss experienced by AFX in July.