Skyward Finance, an IDO platform built on the NEAR Blockchain, has suffered $3 billion in abuse. This caused Skyward’s altcoin project to drop by over 90 percent. Here are the details…
NEAR-based altcoin hacked
The other day, the Skyward Finance team informed users that the project’s treasury was drained by a smart contract exploit. The team said the attack rendered the entire treasury and its native token, SKYWARD, “effectively worthless.” Thus, he explained that he was very affected by the attack. User funds were not compromised, however. Skyward stated that current and previous token sales were not affected by the exploit. This relieved investors who participated in the token sale.
Naikwadi, primarily a community member, warned the project and users. Naikwadi stated that he had warned Skyward Finance and Ref Finance about the attack. SKYWARD urged token holders to use or dispose of their tokens as much as they can. He added that since attackers have already transferred assets to different wallets, they should avoid interacting with Skyward Finance.
Project community warned: Do not interact
Six hours after Naikwadi’s update, Skyward Finance officially informed users about the attack. He told the crypto community not to further interact with the protocol as they are outside of the affected contract. The team used the following statements:
Contracts are completely locked, meaning no one can stop or prevent future problems with the SKYWARD token – not even us. The platform recommends that users withdraw their funds securely wherever possible and that the community no longer interacts with Skyward.
The malicious on-chain event first contacted Aurora Lab’s community moderator, Sanket Naikwadi, after a member of the NEAR community who used the phrase “Near Scout” on Twitter noticed the treasure was empty. She then confirmed this exploit and warned the relevant protocols, as we mentioned above.
Hacker pulled $3 million
Naikwadi was the first to share the news on Twitter a few hours before Skyward Finance released its own statement on the situation. According to his analysis, the hacker withdrew 1.1 million NEAR tokens, worth about $3 million at the time. The hacker reportedly initiated the attack by purchasing SKYWARD tokens through the DeFi platform Ref Finance and then using them for NEAR through the Skyward Treasury for a much higher value than it actually was.
The coin dropped from $13.62 to $0.58. It’s changing hands at $0.87 at the time of writing. The cryptocurrency is 99.1% below its all-time high of $99.45, which it recorded on June 16, 2022.
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