Sandbox announced that it contained a cross‑chain bridge vulnerability that allowed an attacker to mint unbacked SAND tokens on the Base and BNB Smart Chain networks. The project disabled transfers involving Base and BNB Smart Chain while confirming that SAND on Ethereum and Polygon remained secure. Upbit and Bithumb halted SAND deposits and withdrawals after detecting the incident. On‑chain analysis indicated that roughly 14.75 million SAND tokens, representing less than 0.01% of the 3 billion total supply, were moved from the Ethereum adapter. The attacker minted the unbacked tokens by exploiting compromised bridge permissions, creating about 14.9 billion SAND across two addresses, though the direct financial impact was minimal, valued at approximately $675,000 in ETH. The Sandbox stated that no user wallets were compromised and that compensation would be provided to eligible liquidity providers based on pre‑attack balances, though a payment schedule has not been disclosed. The vulnerability was linked to the takeover of LayerZero delegate permissions via an approveAndCall function, a claim made by security firm Blockaid, which the project has not yet confirmed in a detailed post‑mortem. Trading on the affected networks was suspended, and South Korean exchanges Upbit and Bithumb imposed transfer restrictions following their own security notices. SAND’s market price hovered near $0.05, with a 24‑hour volume of about $66 million and a market capitalization near $136 million. The incident follows a prior LayerZero‑related exploit involving KelpDAO, which resulted in the theft of $292 million worth of rsETH. Sandbox, an Animoca Brands subsidiary that raised $93 million in 2021, said it will publish further details as its investigation continues, but no timeline has been set for restoring Base and BNB Smart Chain transfers or opening compensation claims.