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Axelar Responds to Security Incident: Axelar and IBC Remain Unaffected; Vulnerability Stemmed from “Infinite Minting” Issue in Third-Party Token Contract
Svmuu News: The cross-chain protocol Axelar Network issued a statement regarding the recent security incident involving Secret Network, stating that there are misunderstandings within the community. Neither Axelar nor the Inter-Blockchain Communication Protocol (IBC) was attacked or compromised, and the affected token smart contract was not developed, deployed, or maintained by Axelar. and Axelar’s firewall mechanism prevented the impact from spreading further to other chains. It is reported that the exploited contract was a forked version based on CW20-ICS20, but the developers removed two core security checks, leading to an “infinite mint” vulnerability. By removing the validation mechanisms originally designed to prevent such issues, this fork altered the contract’s original trust model and was not subjected to a new security audit. Axelar Network explained that anyone can deploy contracts for cross-chain asset wrapping via IBC, and similar contracts are also used to wrap tokens from other chains into the Secret Network. However, the Secret side-chain fork involved in this incident was vulnerable due to the removal of critical security checks. This incident was not caused by a specific logical flaw, nor was it an issue with the IBC protocol itself; rather, it stemmed from security risks introduced by modifications made to a third-party contract.
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