Skyward Finance, a launchpad startup using Near Protocol, had $3 million stolen by an unidentified hacker in an unexpected breach. The Skyward Finance team recognized the scam and <a href="https://twitter.com/skywardfinance/status/1587947957789331457" target="_blank" rel="nofollow noopener">stated</a> that a contractual vulnerability has been used to empty the Skyward Treasury. Skyward Finance is an initial DEX offering (IDO) system that empowers equitable token distribution for companies using the <a href="https://www.cryptoknowmics.com/news/near-technical-analysis-bad-news-for-near-protocol-with-this-fallout">Near Protocol</a>.

[embed]https://twitter.com/skywardfinance/status/1587947957789331457?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1587947957789331457%7Ctwgr%5E7fd55f1b566e7df691c65047c8373f77c2e3d662%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fwww.cryptoknowmics.com%2Fnews%2Fwp-admin%2Fpost.php%3Fpost%3D249065action%3Dedit[/embed]
<h2>Skyward Finance Breach Recognized by BlockSec</h2>
<a href="https://www.cryptoknowmics.com/news/blocksec-discovers-replay-attack-using-ethpow-tokens">BlockSec</a>, a security company, claims that the vulnerability was used in only one transaction. The attacker retrieved over 1.1 million bundled Near tokens ($3 million) in a cycle from IDO's treasury contract during this operation.

Anyone who wished to redeem Skyward Finance tokens for wrapped Near tokens could use the contract, which was an open contract and could be used by anyone who wanted to redeem Skyward Finance tokens. According to sources, BlockSec discovered a flaw in the contract's token-redemption operation that neglected to verify redundant token account IDs.
<h2>Exploitation Process</h2>
Sanket Naikwadi, a community moderator for Aurora Lab, posted the information on Twitter. He said that the vulnerability was discovered by a member of the Near Protocol group who goes by the name Nearscout.

[embed]https://twitter.com/sanket_naikwadi/status/1587854474587930624?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1587854474587930624%7Ctwgr%5E4fc9fc5bcf498293b88b9d32c4cd4d370aa468c7%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fwww.cryptoknowmics.com%2Fnews%2Fwp-admin%2Fpost.php%3Fpost%3D249065action%3Dedit[/embed]

The sequence of tweets regarding the exploiting stated that the Skyward organization and Ref finance, a community-led multi-purpose <a href="https://www.cryptoknowmics.com/news/project-mariana-by-bis-to-investigate-cbdc-connection-with-defi">decentralized finance (DeFi)</a> network developed on the Near Protocol, have been informed of the depletion, according to the sequence of tweets on the vulnerability. According to reports, the exploiter started the drain by purchasing numerous skyward tokens on ref finance.

In addition, Naikwadi noted that the hacker has already removed NEAR from dozens of wallets, warning holders of SKYWARD Tokens to exchange their tokens elsewhere and stop communicating with Skyward Finance.

The incidence occurs as the number of cryptocurrency hacks rises. Over $650 million in damages were caused by as many as 44 scams in only one month.

Skyward Finance Suffered $3 Million Breach on Near Protocol

The Skyward Finance team recognized a breach and stated that a contractual vulnerability has been used to deplete the Skyward Treasury.

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Skyward Finance Suffered $3 Million Breach on Near Protocol

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