The cross-chain interoperability protocol Axelar has suspended the connection to the Secret Network. Prior to that, a security incident related to the IBC route resulted in the theft of approximately $4.67 million of bridging assets. Axelar states that the preliminary issue was focused on the ICS-20 contract on the Secret side and that the core agreement itself was not affected.

Emergency closing of two connections

In an update dated 19 June, Axelar stated that the team found an anomaly in the assets that had been transferred from the Axelar chain to Secret Network by means of a cross-chain communication agreement. Following the incident, its Emergency Committee has closed the two related links between Secret and Secret-SNIP.

The party to the agreement stated that it was affected by a smart contract for ICS-20 on the side of Secret used in the Cosmos IBC connection between Axelar and Secret. The scale of the loss, as currently disclosed, was approximately $4.67 million.

  • Stolen assets of approximately $4.67 million
  • Closed Secret connection with Secret-SNIP
  • Event involving Axelar to Secret associated IBC route

The impact has not been expanded

According to Axelar, at this stage there are indications that the problem is limited to assets transferred from Axelar to Secret Network through the above-mentioned affected IBC route. Apart from this path, other IBC connections currently appear unaffected, and other Secret Network tokens have not been detected.

The team also stressed that the Axilar core agreement had not been affected by the incident. This means that the focus of the current investigation is more likely to fall on specific integration links than on the Axelar network of certifiers or its bottom interoperability infrastructure.

The investigation continues.

Axelar stated that the team had contacted the relevant exchange and law enforcement agencies and would continue to pursue the investigation. The parties also indicated that more detailed ex post analysis reports were being prepared.

As of the time of the submission, the full technical details of the attack had not been published by Axelar and the Secret Network, nor did they indicate the specific process by which the loopholes were exploited. The current public information is mainly directed towards the Secret side of the contract, not the entire cross-chain network itself.