The Sandbox Faces Security Alert After Over 500M SAND Tokens Minted on Base

Highlights:

• Blockaid raised an alert after one address minted more than 500 million SAND tokens on Base.
• Upbit and Bithumb warned traders that the incident could lead to sharp SAND price moves.
• The Sandbox has not yet said how the address gained permission to mint the tokens.

The Sandbox (SAND) came under scrutiny on August 22 after an address minted more than 500 million SAND tokens on the Base network. Blockchain security firm Blockaid reported the unusual activity and said the address appeared to have gained minting access. Following the alert, South Korean exchanges Upbit and Bithumb warned SAND traders about possible security risks and increased price volatility.

🚨 Blockaid detected an ongoing exploit on @TheSandboxGame SAND OFT on Base.
Attackers hijacked LayerZero delegate permissions via approveAndCall and minted unbacked SAND.
~$49B face-value SAND minted so far across ~400+ txs. Attack still ongoing.
More details in 🧵

— Blockaid (@blockaid_) August 22, 2026

The scale of the token creation raised concerns over the security of the affected contract and the status of the newly minted supply. Upbit later issued a warning over a possible security problem involving SAND and advised users to watch for increased price volatility. Bithumb published a similar caution notice on the same day.

The mint function permits a project to mint its own tokens. The project typically limits minting capabilities to only authorized smart contracts or certain addresses. In case an unauthorized entity acquires access, it may mint tokens on its own.

That risk has drawn attention to the SAND incident because of the amount involved. More than 500 million newly created tokens represent a significant figure and could create market uncertainty if they move into circulation. However, several details still remain unclear.

Upbit and Bithumb Warn SAND Investors

South Korean exchanges reacted quickly as the security concerns emerged. Upbit said it had identified circumstances suggesting a possible security issue involving SAND. The exchange warned investors that the situation could increase price volatility and urged them to take extra care when trading the token.

Bithumb issued a similar warning at 11:45 a.m. on August 22. The exchange said it had found signs of a possible security issue involving SAND and warned traders that the token could see stronger price swings. For now, Bithumb is only warning investors while it looks into the situation. The notice does not mean SAND has been delisted or that trading will be permanently restricted.

Over 500M SAND Minted in Suspected The Sandbox Security Breach; Upbit Issues Warning, Bithumb Suspends Transfers

Major metaverse project The Sandbox is suspected of suffering a serious security breach on Base, with an attacker reportedly gaining token minting permissions and… pic.twitter.com/LpMeQZFRCM

— Wu Blockchain (@WuBlockchain) August 22, 2026

The Sandbox Response Now in Focus

The Sandbox team has yet to provide a full technical explanation in the official sources available at the time of writing. A detailed response from the project could clarify how the incident happened, whether the affected minting access has been removed, and how the team plans to handle the newly created tokens. For now, the security alert from Blockaid and the warnings from Upbit and Bithumb have placed SAND under closer market scrutiny.

The Sandbox is part of the Animoca Brands ecosystem and has received investments from various major tech and investment companies. For example, previously, the company got $93 million in a financing round headed by SoftBank Vision Fund 2, among other notable investors such as Samsung Next, LG Technology Ventures, Galaxy Interactive, and Polygon Studios.