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The Sandbox’s SAND token faces fresh security concerns after Lookonchain reported that the incident created more than 500 million tokens on Base. Upbit warned traders on August 22 to use special caution. The exchange cited possible security problems and sharp price swings.
Lookonchain said the incident created more than 500 million SAND tokens. That amount equals at least 16.7% of SAND’s maximum three billion token supply. A BaseScan snapshot from before the incident showed only 14.699 million SAND in the Base contract. The reported new mint exceeded that figure by more than 34 times.
Meanwhile, SAND remained higher over the previous week. The token gained more than 19% in seven days, while 24-hour trading volume reached $87 million.
Upbit told traders to prepare for increased volatility after detecting signs of a security problem. It did not halt trading operations. Still, Upbit and Bithumb restricted SAND deposits and withdrawals. Those controls limited token transfers while concerns around the Base contract remained unresolved.
What happens if unauthorized SAND reaches exchanges before The Sandbox can neutralize the new supply? The supplied data does not show where the newly created tokens ultimately moved.
Lookonchain described the event as an “infinite mint attack.” Such an attack involves compromised minting permissions that can allow unrestricted token creation.
The Base SAND contract is 0xac531Eb26Ca1d21b85126De8FB87E80E09002DcF. Lookonchain linked suspected unauthorized minting to 0x67624BFadee937c9281B4f98Ce18aF1bee01257e.
On August 22, Lookonchain said the suspected attack remained active. BaseScan showed 302 transactions from the linked wallet at 05:23:10 UTC. The Sandbox had not issued a full statement at the time of writing. Key unknowns included the cause, minting access, final supply increase, and destination of the tokens.
A transaction hash tied directly to the exploit was not included. BaseScan showed the wallet summary, while bot protection blocked attempts to open individual transaction details. Past incidents show how supply shocks can affect tokens. In May 2024, Blockchain Game Partners said a compromised minter key enabled a malicious contractor to create five billion GALA.
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The company said it stopped the incident, blocklisted the wallet, and burned the supply. More recently, Harmony rolled back its blockchain after an attacker minted roughly four billion ONE. That ONE mint equaled about 26% of the token’s supply, according to the supplied report. ONE fell after the mint.
Global Ledger counted 224 publicly disclosed crypto hacks during the first half of 2026. Those incidents caused about $1.32 billion in losses. The firm also found that projects now disclose incidents about twice as quickly as one year earlier. Traders are watching for a Sandbox statement, final mint totals, token movements, and further exchange restrictions.
The SAND security alert centers on more than 500 million newly minted tokens, exchange transfer restrictions, and unresolved questions over the Base contract. Traders now await The Sandbox’s response, the final mint total, token-flow evidence, and any additional exchange action.
