The Sandbox Commits to 1:1 Compensation Plan for August Attack Victims
The Sandbox has announced a plan to compensate users affected by an August 21 attack that resulted in losses of around $697,000. The company will open a two-week claim window within two weeks of its August 27 disclosure and will pay out in Ethereum-based SAND tokens.
The compensation only applies to token holders who held bridged SAND on Base and BNB Smart Chain (BSC) at the time of the exploit. Users will have to wait at least one month to receive their compensation, which will be sent as Ethereum-based SAND.
The Sandbox blames the flaw in the token contracts on Base and BSC, which were set up to double as the bridge's registered application. The problem was that the messaging layer interpreted any input from that direction as direct instructions from The Sandbox itself, allowing attackers to exploit the loophole and cause significant economic damage.