The Sandbox has paused its SAND bridge on Base and BNB Good Chain (BSC) after detecting a vulnerability that allowed an attacker to mint unbacked tokens on each networks. In line with an X put up by The Sandbox, the mission confirmed the incident on August 22, 2026, and studies it’s contained; bridging to and from Base and BSC is at present disabled to isolate the affected SAND provide.
The Sandbox Comprises SAND Bridge Exploit
The Sandbox stated its crew recognized and addressed a vulnerability within the SAND cross-chain bridge on Base and BNB Good Chain. In line with the mission’s official announcement, the affect of the incident is “minimal,” representing lower than 0.01% of the entire SAND provide.
The problem occurred on the bridge layer, the place tokens are sometimes locked on the native chain earlier than an equal quantity of tokens is minted on the vacation spot chain. When this mechanism is exploited, an attacker can generate wrapped tokens with out corresponding backing belongings.
The Sandbox expanded SAND to BNB Good Chain and Base in 2024 through LayerZero to allow token motion throughout a number of networks reasonably than concentrating solely on Ethereum and Polygon.
Following the invention of the incident, The Sandbox disabled the SAND bridge to and from Base and BSC, leaving tokens on each networks remoted throughout the investigation. The mission has not but supplied a timeline for reopening the bridge and said it can launch a technical autopsy later.
Unbacked SAND Minted on Base and BSC
In line with The Sandbox, the attacker was capable of mint unbacked SAND on Base and BSC. These tokens had been created on the affected chains with out being backed by locked SAND on Ethereum.
In line with PeckShield, roughly 14.9 billion SAND was abnormally minted throughout two addresses throughout the incident. At a SAND worth of round $0.045 on the time, this token amount held a large nominal worth, however shouldn’t be seen as precise monetary loss because the bridge was disabled and liquidity on the affected networks was constrained.
#PeckShieldAlert Looks like The @TheSandboxGame ($SAND) received exploited. 14.9B $SAND minted throughout 2 addresses: 0xAbE0…4D22 & 0x638C…F296 pic.twitter.com/a5Jgym87gR
— PeckShieldAlert (@PeckShieldAlert) August 22, 2026
The Sandbox warned customers to not purchase, promote, or commerce SAND on Base and BSC, as liquidity on each networks has been compromised. With the bridge at present disabled, SAND on these two chains stays remoted and can’t be redeemed via the official bridge.
Ethereum and Polygon SAND Stay Unaffected
The Sandbox affirmed that SAND on Ethereum and Polygon stays unaffected by the incident. The mission additionally famous that no consumer wallets had been compromised, and holders on these two networks don’t have to take pressing motion.
In line with The Sandbox, the SAND locked on Ethereum backing the bridged tokens stays totally intact. This means that the incident was localized to the bridge on Base and BSC reasonably than the underlying token contract or consumer wallets.
CoinGecko information on the time of reporting confirmed SAND buying and selling round $0.0464, up roughly 16.9% over 7 days however down barely by 0.7% over 24 hours. The token had a market capitalization of round $136.3 million, a 24-hour buying and selling quantity of roughly $4.16 million, a circulating provide of about 2.938 billion SAND, and a complete provide of three billion SAND.
SAND Worth Chart (1H). Supply: TradingView
Quick-term worth fluctuations occurred as CoinGecko additionally displayed a warning relating to irregular minting exercise associated to SAND on Base. With the bridge exploit, key areas to observe now embody figuring out the scope of unbacked tokens, managing liquidity on Base and BSC, and the timing of The Sandbox’s technical autopsy launch.
Exchanges and LPs Face Comply with-Up Measures
Bithumb was among the many first exchanges to droop SAND deposits and withdrawals following the safety advisory from The Sandbox. In line with the trade’s announcement, deposit and withdrawal operations for SAND had been halted beginning August 22, 2026, after noting safety points related to the token.
The suspension of deposits and withdrawals doesn’t imply spot buying and selling of SAND throughout all markets has ceased, however it could limit the power to maneuver tokens between exchanges and on-chain wallets throughout the investigation. This can be a widespread precautionary measure when exchanges have to keep away from receiving tokens originating from affected networks or bridges.
On the on-chain liquidity aspect, The Sandbox said it’s taking a pre-incident snapshot and making ready a compensation plan for eligible customers in impacted liquidity swimming pools. The mission has not but introduced particular eligibility standards, payout schedules, or compensation calculation methodologies.
This plan can be an important a part of the post-incident restoration course of, notably for LPs on Base and BSC. If swimming pools absorbed unbacked SAND or skilled asset imbalances throughout the exploit, the pre-incident snapshot may also help determine the affected consumer group.
What to Watch Subsequent
The Sandbox has not introduced a reopening date for the SAND bridge on Base and BSC. The mission said it can launch a full incident report and an in depth technical autopsy upon finishing its investigation.
Key factors remaining to be clarified embody the foundation reason behind the vulnerability, how the unbacked SAND minted can be dealt with, and precise financial loss, if any. Whereas PeckShield flagged roughly 14.9 billion SAND abnormally minted, this determine displays the generated token amount reasonably than belongings drained from the system.
The Sandbox has additionally but to element the compensation plan for LPs, together with eligibility standards, snapshot timestamps, and processing schedules. Pending new updates, the mission continues to advise customers in opposition to buying and selling SAND on Base or BSC.
