The Sandbox Announces Compensation Plan for the August 22 Security Incident

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On August 22, The Sandbox shared on-chain news of a security breach, revealing a cross-chain vulnerability on Base and BNB Smart Chain that resulted in the theft of 14,742,341.84 SAND, valued at approximately $1.5 million. The Ethereum and Polygon networks were unaffected. The compromised contracts have been permanently disabled. The project will compensate pre-incident holders at a 1:1 ratio using treasury funds, with claims opening in two weeks. The attacker’s address has been reported to TRM Labs and Chainalysis, and exchanges are being coordinated with accordingly.

ChainThink reports that, on August 27, according to an official announcement, The Sandbox released a post-incident analysis report and compensation plan regarding the vulnerability incident on August 22.

The report shows that attackers exploited vulnerabilities in cross-chain configuration contracts on the Base and BNB Smart Chain, stealing 14,742,341.84 SAND tokens (approximately 0.5% of the maximum supply) from the Ethereum vault, with an estimated economic impact of $1.4968 million, of which approximately $987,000 was actually retained by the attackers.

The Ethereum mainnet and Polygon network remain unaffected. Contracts deployed on Base and BSC have been permanently disabled and will not be reactivated.

Regarding the compensation plan, The Sandbox stated that wallets legally holding cross-chain SAND on Base or BSC prior to the incident will be compensated on a 1:1 basis with Ethereum SAND, funded from the treasury without minting new tokens.

The application process will open over the next two weeks and remain active for two weeks. The team has reported the attacker’s addresses to TRM Labs and Chainalysis and has communicated with relevant exchanges.

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