A security breach on August 21 allowed attackers to mint about 14.9 billion unbacked SAND tokens on The Sandbox's Base and BNB Smart Chain networks through a smart-contract flaw in its cross-chain bridge. PeckShield discovered the issue, prompting The Sandbox to pause bridging on both networks and isolate the compromised tokens. Users should not trade SAND on Base or BNB Smart Chain until the bridges are restored due to compromised liquidity. Ethereum and Polygon SAND, user wallets, and Ethereum locked reserves remain unaffected. The realized loss from the incident is below 0.01% of total supply. The Sandbox is preparing compensation for affected liquidity providers. Separately, Coinbase announced plans to delist 10 perpetual futures contracts including SAND on August 26, with open positions automatically settling.