Axelar confirmed an exploit impacting assets bridged to Secret Network via the IBC connection, resulting in approximately $4.67M in losses. The issue is isolated to the Secret-side ICS-20 smart contract within the Cosmos Inter-Blockchain Communication (IBC) framework, specifically affecting assets bridged from Axelar to Secret. No other IBC routes, Secret native assets, or Axelar integrations appear impacted. In response, the Axelar emergency committee disabled Secret and Secret-SNIP connections to contain the exploit. Teams are coordinating with exchanges and law enforcement while investigations continue. Axelar emphasized that its core protocol remains unaffected and that a detailed post-mortem will be released once the investigation is complete.