Sandbox Disables Base and BNB Bridging After Exploit Mints Unbacked SAND

The Exploit and Containment

The Sandbox disabled its bridge on Base and BNB Chain after detecting an exploit that minted SAND tokens without backing, the studio announced Tuesday. The team said the incident impacted less than 0.01% of total SAND supply and warned users against trading SAND on either affected network until further notice. No details were disclosed about the exploit's mechanics or how long the bridge had been vulnerable.

Exchange Responses and Jurisdictional Friction

South Korean exchanges Upbit and Bithumb moved to freeze SAND transfers under the country's user-protection framework. According to The Defiant, Upbit halted both deposits and withdrawals of SAND on Ethereum — the chain The Sandbox stated was not compromised by the exploit. Bithumb's specific actions were not detailed, but both exchanges' moves reflect local regulatory pressure to prevent user losses during security incidents, even when the frozen chain may not have been the source of the problem.

Unresolved Questions

The containment appears limited to bridging infrastructure rather than a network-wide issue. The Sandbox's claim that Ethereum was unaffected contrasts with Upbit's blanket freeze on Ethereum SAND, suggesting either conservative exchange risk management or incomplete information flow between the studio and trading venues at the time of response.