The Sandbox said it contained a bridge exploit after an attacker reportedly minted 14.9 billion unbacked SAND (SAND) tokens on Base and BNB Smart Chain.
Key Points:
- PeckShield reported 14.9 billion unbacked SAND minted across two wallets, with a nominal value of about $718 million.
- The Sandbox said the vulnerability was limited to Base and BNB Smart Chain, while Ethereum and Polygon were unaffected.
- No user wallets were compromised, the project said.
Sandbox Bridge Exploit
Security firm PeckShield said the attacker created 14.9 billion unbacked SAND across two addresses, valuing the unauthorized tokens at roughly $718 million. Blockaid said the incident involved The Sandbox’s Omnichain Fungible Token on Base, a cross-chain token standard using LayerZero infrastructure.
Blockaid said the attacker compromised the Base OFT and obtained administrative permissions that allowed new SAND to be minted. LayerZero itself was not compromised, Blockaid said.
The Sandbox said it identified and contained the vulnerability, adding, “The impact is minimal, representing less than 0.01% of the total SAND token supply.” Ethereum and Polygon SAND were unaffected, it said.
The project warned users against trading SAND on Base or BNB Smart Chain while affected liquidity remained isolated. Transfers and redemptions were disabled, and eligible liquidity providers will be compensated after review.
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Blockaid Security View
SAND fell about 5% after the disclosure, trimming a weekly gain that had exceeded 30% during the broader crypto market recovery. The decline partly erased the week’s rally.
The exploit added to substantial crypto losses this year. Nearly $400 million was lost to exploits over the previous 90 days, while year-over-year losses reached about $1.6 billion.
Recent incidents have affected hardware wallets including ColdCard and payment providers such as Triple-A, while the report also cited growing offensive cyber capabilities in AI models. That pattern provides broader context for the Sandbox exploit as tokenization, stablecoins and AI agents increase the number of systems exposed to security risks.
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