The project was unusually frank in their announcement, writing on Twitter that the hack had "render[ed] the Treasury and the $SKYWARD token effectively worthless... We recommend users to withdraw their funds safely where they can and for the community to no longer interact with Skyward."
Skyward Finance is a project based on the NEAR blockchain, aiming to help users with initial token distribution. The project's treasury was drained of 1.1 million NEAR (~$3.2 million) after a hacker discovered a vulnerability in the project's smart contract. Crypto exploit research group Rekt wrote, "The fact that it took over a year for anyone to find this relatively simple exploit is remarkable." and questioned, "Was this incident an honest, albeit simple, mistake? Or a planned ejector seat?"