Blockchain interoperability network Axelar on Friday disclosed a security incident impacting assets bridged over IBC from the Axelar chain to Secret Network, resulting in the loss of approximately $4.7 million in tokens.
We have identified an incident affecting assets bridged over IBC to Secret Network from the Axelar chain, with approximately $4.67M worth of tokens taken. Based on current information, the issue is isolated to the Secret-side ICS-20 smart contract 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 code remains verifiable on-chain. Through its integration with Axelar, it enables private cross-chain communication, allowing applications to support use cases like confidential DeFi trading, private NFT transactions, and anonymous governance.
Axelar said early 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.
