The Sandbox Vows 1:1 Repayment After $700K Bridge Exploit

The Sandbox has pledged to repay affected users after a bridge exploit on August 21 drained $700,000 worth of SAND tokens from an Ethereum vault. The company confirmed that about 14.7 million SAND tokens were compromised, equivalent to around 0.5% of the token's maximum supply.

The attacker exploited a configuration flaw in SAND's Base and BNB Chain contracts, allowing them to mint unbacked tokens. However, more than 339 trillion unbacked SAND tokens were minted on the two networks, but these have been isolated and cannot be bridged or redeemed.

The claims process is expected to open within two weeks and remain open for another two weeks. The company will use its treasury to compensate eligible users who held bridged SAND on Base or BNB Smart Chain before the attack. Two centralized exchanges hold more than 72% of eligible balances and will distribute compensation directly to their affected customers.