In the case of Near Protocol’s Skyward Finance, the drain totalled $3 million in Near tokens that had been wrapped in a security blanket.
Unknown hackers stole $3 million from Skyward Finance, a Near Protocol launchpad initiative.
The Skyward Finance team recognized the hack and said, “The Skyward Treasury has been depleted due to a contract exploit.”
According to the security company BlockSec, the attack was carried out with a single transaction. In this transaction, the hacker redeemed more than 1,100,000 Near tokens wrapped in a loop from Skyward’s treasury contract for $3 million.
The contract was accessible to the general public and could be utilized by anybody desiring to exchange Skyward Finance tokens for Near tokens.
The contract’s token-redemption function failed to check for duplicate token account IDs, according to a statement published by BlockSec with The Block.
The event occurs as the number of crypto hacks continues to rise. In the previous month alone, 44 cases of abuse caused losses in excess of $650 million.
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