Cross-chain interoperability protocol Axelar has suspended its connection with Secret Network. This follows a security incident related to IBC routing that resulted in the theft of approximately $4.67 million in bridging assets. Axelar stated that initial assessments indicate the issue is concentrated on the ICS-20 contract on the Secret side, and the core protocol itself remains unaffected.
Emergency shutdown of two connections
In an update on June 19, Axelar stated that its team detected anomalies in assets transferred from the Axelar chain to the Secret Network via the cross-chain communication protocol IBC. Following the incident, its emergency committee shut down both the Secret and Secret-SNIP connections.
The parties involved stated that the affected component was a Secret-side ICS-20 smart contract used in the Cosmos IBC connection between Axelar and Secret. Based on current disclosures, the losses amount to approximately $4.67 million.
- The stolen assets amounted to approximately $4.67 million.
- Secret and Secret-SNIP connections have been closed.
- The incident involves IBC routes from Axelar to Secret.
The scope of the impact has not yet expanded.
Axelar states that current indications suggest the issue is limited to assets transferred from Axelar to Secret Network via the affected IBC route mentioned above. Other IBC connections appear unaffected, and no anomalies have been detected with other Secret Network tokens.
The team also emphasized that the Axelar core protocol was not affected by this incident. This means that the current investigation is more likely to focus on specific integration points rather than Axelar's validator network or its underlying interoperability infrastructure.
The investigation is ongoing.
Axelar stated that its team has contacted relevant exchanges and law enforcement agencies and will continue its investigation. The parties involved also indicated that they are preparing a more detailed post-incident analysis report.
As of press time, neither Axelar nor Secret Network has released full technical details of the attack, nor explained the specific process by which the vulnerability was exploited. Currently available information primarily points to the Secret-side contract, rather than the entire cross-chain network itself.
