The Sandbox said a flaw in its cross-chain bridge allowed an attacker to mint roughly 14.9 billion unbacked SAND on Base and BNB Smart Chain. Blockchain security firm PeckShield said it spotted the issue on Aug. 21, identifying two addresses that together minted the tokens before the project shut down bridge operations on the two affected networks.
According to The Sandbox, the incident was limited to bridged assets on Base and BNB Smart Chain. SAND on Ethereum and Polygon, user wallet holdings, and the Ethereum-locked assets backing the token were not affected. The company added that the portion involving real collateral was less than 0.01% of SAND’s total supply.
The Sandbox said it is preparing a compensation plan for affected liquidity providers and advised users not to trade SAND on Base or BNB Smart Chain until bridge functionality is restored. Separately, Bitcoin News reported that Coinbase plans to delist 10 perpetual futures contracts, including SAND, on Aug. 26. Any open positions will be settled automatically at that time.
The Sandbox said a vulnerability in its cross-chain bridge let an attacker mint unbacked SAND on Base and BNB Smart Chain.
Blockchain security firm PeckShield said on Aug. 21 that two addresses had minted about 14.9 billion SAND in total. The Sandbox then shut down bridge functions on both networks.
What was affected
The Sandbox said the impact was limited to bridged assets on Base and BNB Smart Chain. SAND on Ethereum and Polygon, user wallet assets, and the Ethereum-locked collateral backing the token were not affected.
The company also said the share tied to real collateral was less than 0.01% of SAND’s total supply.
Project response
The Sandbox said it is working on a compensation plan for affected liquidity providers. It also advised users not to trade SAND on Base or BNB Smart Chain before bridge service is restored.
Coinbase to delist SAND futures
Separately, Bitcoin News reported that Coinbase plans to delist 10 perpetual futures contracts, including SAND, on Aug. 26. Open positions will be settled automatically at that time.
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