Blockchain gaming platform The Sandbox has promised to repay eligible sand holders 1:1 after the Aug. 21 Bridge Exploit extracted 14.744 sands, worth about $700,000, from an Ethereum vault.
On Thursday, Dr published A postmortem, stating that users who legitimately held bridged sand on the BASE or BNB smart chain prior to the attack will receive an equal amount of Ethereum-based sand. Compensation will come from the sandbox treasury without any new tokens being minted.
The claims process is expected to open in two weeks and will remain open for another two weeks. According to The Sandbox, the two centralized exchanges hold more than 72% of eligible balances and will distribute compensation directly to their affected customers.
The project said attackers exploited a configuration flaw in Sander’s base and BNB chain contracts, allowing them to be the sole verifiers of incoming bridge messages and mint unbacked tokens. Sandbox has confirmed that around 14.7 million sand tokens have been mined, equal to around 0.5% of the 3 billion maximum supply of tokens.
Although more than 339 trillion unbacked SAND were minted on the two networks, those tokens are isolated and cannot be bridged or redeemed. Sand on Ethereum and Polygon was not affected.
Compromised bridge contracts will be permanently retired. Sandbox states that any future Base or BnB chain bridges will use the newly established contract.
SAND traded at around $0.04 at press time, down 10.4% from the previous seven days. According to That’s CoinGecko.
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