The Sandbox Announces 1:1 Compensation Plan After $697K SAND Theft

The Sandbox has announced plans to compensate users affected by an exploit that took place on August 21, resulting in the theft of approximately $697,000 worth of SAND tokens. The company will provide a 1:1 compensation plan, with affected users eligible for reimbursement in Ethereum-based SAND.

The claim process is set to open within two weeks of August 27 and will remain open for another two weeks. Affected users will have to wait at least one month to receive their compensation.

The exploit occurred due to a flaw in the token contracts on Base and BNB Smart Chain (BSC), which allowed attackers to mint SAND tokens against Ethereum deposits that never happened. The attackers then sold some of the fake tokens for ether and used the reverse-bridge function to draw real SAND out of the Ethereum vault.

The Sandbox has closed the bridge at the contract level across all three chains, citing concerns over the safety of reopening it. According to the company, any attempt to reclaim control over the delegate roles could be undone by anyone willing to pay gas.