Axelar Bridge Exploit Results in $4.67 Million Loss Linked to Secret Network

On June 19, 2026, Axelar Network reported a security incident where approximately $4.67 million worth of tokens were drained from the Secret Network due to an exploit in a modified ICS-20 smart contract. The attacker exploited vulnerabilities in the contract that failed to verify token transfers from an authentic Axelar-controlled IBC channel. This incident specifically affected bridged assets from Axelar to Secret Network, including wrapped USDT, USDC, DAI, WETH, WBTC, WBNB, and wstETH. Axelar's core protocol and other IBC connections remained unaffected. In response, Axelar disabled the affected bridge connections and initiated an investigation while contacting law enforcement and exchanges. The vulnerability was traced back to a lack of critical security checks in the contract, which allowed for the creation of unbacked wrapped tokens. A full post-mortem is expected to provide further insights into the incident.

Key Points: • Approximately $4.67 million in tokens were drained from the Secret Network due to a contract exploit. • The exploit targeted a modified ICS-20 smart contract, failing to verify token transfer origins. • Axelar's core protocol and other IBC connections were not affected, and an investigation is ongoing.