Eligible holders on Base and BNB Chain will receive Ethereum-based SAND from the project's treasury—claim requests are set to open within the next two weeks. The Sandbox confirmed it will reimburse eligible holders on a 1:1 basis following the August 21 exploit, which drained 14,744 SAND (approximately $700,000) from an Ethereum vault.
In a post-incident analysis published Thursday, the company stated that anyone who legitimately held SAND bridged to Base or BNB Smart Chain prior to the attack will receive an equivalent amount of SAND on Ethereum. The compensation will come from The Sandbox's treasury, without the issuance of new tokens.
Claims are expected to open in two weeks and remain available for another two. Two centralized exchanges hold over 72% of the eligible balances and will pass the compensation directly to affected customers.
According to the company, the attacker exploited a configuration flaw in the SAND contracts on Base and BNB Chain, making themselves the sole validator for bridge messages—thereby allowing them to issue unbacked tokens. In total, approximately 14.7 million SAND were drained, representing about 0.5% of the total supply of 3 billion tokens.
More than 339 trillion unbacked SAND tokens were issued across the two networks but remained isolated; they cannot be bridged or redeemed. SAND on Ethereum and Polygon was unaffected.
The compromised bridge contracts will be permanently deactivated. Future bridges on Base or BNB Chain will utilize newly deployed contracts.
At the time of writing, SAND was trading at approximately $0.04, down 10.4% over the past seven days, according to CoinGecko.
