Axelar reported a security incident that led to the theft of roughly $4.67 million in tokens bridged through its IBC connection with the Secret Network. The breach specifically targeted assets moving from Axelar to Secret, leaving the core Axelar protocol untouched.
Incident Details
Axelar identified the vulnerability in the Secret‑side ICS‑20 smart contract that operates within the Cosmos IBC framework. The compromised contract affected only the bridge that transfers tokens from Axelar to the Secret Network, while other IBC links and Secret tokens remained secure.
Immediate Response
Axelar’s emergency committee promptly disabled the Secret and Secret‑SNIP links after detecting the anomaly. The team notified relevant exchanges, engaged law‑enforcement agencies, and began gathering forensic evidence to trace the stolen assets.
Implications for Investors
Crypto investors should monitor the situation as the loss may influence market sentiment toward Axelar‑related assets. Axelar has pledged to publish a comprehensive investigation report, aiming to restore confidence in its blockchain interoperability services.