We recently detected a security matter regarding assets transferred from the Axelar chain to Secret Network using IBC, resulting in the unauthorized removal of approximately $4.67M in tokens. Currently, all evidence indicates that this vulnerability is strictly limited to the Secret-side ICS-20 smart contract. This specific contract handles the Cosmos IBC bridge between Secret and Axelar for assets moving from Axelar to Secret.

The Axelar emergency committee intervened the moment we learned of the situation, promptly shutting down both the Secret and Secret-SNIP connections. Alongside these preventative measures, our team is communicating directly with law enforcement agencies and the corresponding cryptocurrency exchanges to address the event.

We want to reassure everyone that Axelar's core protocol remains entirely uncompromised. The issue is exclusively contained to those assets on Secret that were bridged from Axelar through IBC. Absolutely no other Axelar integrations are impacted, and it appears that no other Secret tokens or alternative IBC connections have been affected in any way.

Our team is actively assembling a comprehensive post-mortem report and will share a detailed breakdown with you as soon as it is ready.