Upbit and Bithumb place SAND on warning list

South Korea’s two largest crypto exchanges, Upbit and Bithumb, have designated The Sandbox (SAND) as a cautionary asset. The cause is unresolved security incidents, including possible hacks of wallets or distributed systems. Deposits have already been temporarily blocked, and withdrawals have also been restricted until the situation has been clarified.

In brief:

• Upbit and Bithumb have placed SAND on the caution list due to unresolved security issues.
• The cautionary status applies from 24 August until the fifth week of September 2026.
• Bithumb will assess at the end of September whether the status will be lifted, extended, or whether trading in SAND will be halted.

Security incidents give rise to concerns

Upbit, South Korea’s largest crypto exchange, announced the measure on 24 August. The platform states that there may be hacks or other security issues involving wallets or the distributed infrastructure of The Sandbox, without the cause having been identified or the problem resolved.

Bithumb, the country’s second-largest exchange, is taking the same step. Both platforms cite South Korean legislation for the protection of digital asset users as the legal basis for the measure.

Bithumb decides on further steps at the end of September

The cautionary status at Upbit runs from 24 August through the fifth week of September 2026, which falls from 28 September to 4 October. For the SAND/KRW and SAND/BTC trading pairs, deposits have already been suspended and withdrawals will only resume once the cautionary status permits.

Bithumb is planning a reassessment between 28 September and 2 October. A decision will then be made on whether the warning is lifted, extended, or whether the exchange fully halts trading in SAND.

What is The Sandbox?

The Sandbox is a blockchain-based virtual gaming platform on which users can create, own, and trade digital objects and virtual land. The SAND token is the native currency of this ecosystem and is traded on several major exchanges.

The announcement by Upbit and Bithumb could put pressure on the SAND price. As long as the security issues remain unresolved, the cautionary status will remain in force and deposits will stay blocked.