Blockchain interoperability network Axelar on Friday revealed a security incident affecting assets bridged via IBC from the Axelar chain to Secret Network, resulting in a loss of approximately $4.7 million in tokens.
We have identified an incident affecting assets linked between IBC and Secret Network from the Axelar chain, with approximately $4.67 million in tokens taken. Based on current information, the issue is limited to the ICS-20 smart contract on the secret side of the Cosmos IBC connection…
– Axelar Network (@axelar) June 19, 2026
Secret Network is a standalone blockchain designed for privacy-by-default smart contracts, where transaction data is encrypted while the code remains verifiable on-chain. Through its integration with Axelar, it enables private cross-chain communication, allowing applications to support use cases such as confidential DeFi trading, private NFT transactions, and anonymous governance.
Axelar said initial findings suggest the issue is isolated to the Secret-side ICS-20 smart contract used in the Cosmos IBC connection between Secret and Axelar for assets transferred from Axelar to Secret.
As an immediate precaution, the Axelar Emergency Committee has disabled Secret and Secret-SNIP connections. The team also contacted relevant exchanges and law enforcement authorities.
The company stated that the incident only affects assets on Secret linked to Axelar and that no other IBC connections, Secret tokens or Axelar integrations appear to be affected. Axelar’s core protocol was not affected, according to the team.
Axelar said it is continuing its investigation and plans to release a detailed autopsy.