Upbit and Bithumb Issue Warning for The Sandbox Over Unresolved Security Issues

South Korea's two largest cryptocurrency exchanges, Upbit and Bithumb, have issued an investment warning for The Sandbox (SAND) due to unresolved security issues. This move does not immediately terminate trading but initiates a formal review process, which could conclude with the removal of the warning, its extension, or the complete suspension of trading support for SAND.

The exchanges cited unexplained or unresolved security incidents as the primary reason for their decision, specifically concerns involving potential breaches related to project wallets or the distributed ledger. At this stage, the provided information does not definitively establish the nature or scale of any damage, and transparency remains a core issue.

Upbit and Bithumb will conduct a follow-up review between September 28 and October 2, which could lead to lifting the warning, extending the observation period, or terminating trading support for SAND. This timeline gives The Sandbox approximately one month to provide necessary clarifications and address the specific concerns that triggered the exchanges' intervention.

The coordinated actions by Upbit and Bithumb are significant given South Korea's influential role in altcoin trading. A potential restriction or delisting could severely impact liquidity access within the local market.