The Sandbox Vows to Repay $700K After Bridge Exploit

The Sandbox has pledged to compensate users affected by a bridge exploit that drained $700,000 from an Ethereum vault on August 21. The attack targeted users who held bridged SAND tokens on Base or BNB Smart Chain.

According to the company's post-mortem analysis, the attacker exploited a configuration flaw in SAND's Base and BNB Chain contracts, allowing them to mint unbacked tokens. As a result, about 14.7 million SAND tokens were drained, equivalent to 0.5% of the token's 3 billion maximum supply.

The Sandbox will repay eligible users 1:1 from its treasury, without minting new tokens. The claims process is expected to open within two weeks and remain open for another two weeks. Two centralized exchanges hold more than 72% of eligible balances and will distribute compensation directly to their affected customers.