Beginning yesterday, some users reported that they are encountering an issue when synchronizing data from SkyDrive to the phone app. The app says data is corrupted or it hangs while trying to download data from SkyDrive.
I’m investigating and it seems the issue is related to SkyDrive service that changed something, making the app work wrong.
The desktop companion is not affected, you can still access your data from your PC.
I’ll keep you up to date about the issue and the resolution. In the meanwhile, please backup your SkyWalletData.txt file from SkyDrive to a safe place, to ensure you won’t loose any data while waiting for a solution.
Sky Wallet 
Thanks for looking into this as its an important part of my day using skywallet is vital for me.
Not sure if this helps or not, but I use the desktop app also and it still works. I checked the Windows Phone app and I get the corrupted error. Desktop App still works.
Now working great since phone app update. Thanks for quick turn-around. Mick
well, nice. I had also the corrupted message with my Windows Phone; so I switched to my desktop companion. After a message (something like “cannot read wallet file, I will now create a new one” it seemed to have overwritten my stuff on SkyDrive, and I am now left with an empty wallet. Then I tried to download the latest Windows Phone app; but I can only find one which costs me money. Which I obviously not going to pay if my data is lost.
Seem a good explanation is needed here before I start paying for it..
Hello,
I’m sorry for your issue.
Please note that if you download again the app from the Windows Phone Store it will recognize you have already paid for that and it won’t charge your credit card again.
Unfortunately, if both your phone app and desktop companion cannot read your data, it seems your SkyDrive data has been corrupted: getting the new version will avoid encountering the issue again, but it won’t be able to recover your data…I’m sorry.