Axelar Bridge and Secret Network Hack: 'Infinite Mint' Vulnerability Leads to $4.67 Million Loss
On June 19, 2026, another high-profile incident occurred in the crypto community: the blockchain project Axelar officially confirmed a hack of its bridge connecting to the Secret Network protocol. The attacker managed to withdraw assets worth approximately $4.67 million by exploiting a critical smart contract vulnerability known as "infinite minting."
During an analysis conducted by the Common Prefix team, the primary developer of Axelar, it was revealed that the bug was embedded in a modified CW20-ICS20 contract on the Secret Network side, operating via the Cosmos IBC connection. The issue stemmed from a lack of channel verification for incoming transactions. This allowed the attacker to launch their own Cosmos chain with a single validator and send fake packets supposedly confirming deposits. As a result, the attacker could mint unlimited quantities of unbacked "wrapped" versions of assets (saToken).
Notably, the theft went unnoticed for seven days. Only after detecting the anomaly did the Axelar emergency committee promptly disable the Secret and Secret-SNIP connections to prevent further unauthorized transfers. Currently, the team is coordinating with exchanges and law enforcement agencies to track and potentially recover the funds.
The incident affected only a limited pool of assets: saUSDT, saUSDC, saDAI, saWETH, saWBTC, saWBNB, and sawstETH. The main Axelar protocol, other IBC connections, and native Secret Network assets remained untouched. This underscores that the vulnerability was localized and did not impact the fundamental infrastructure.
Despite the negative news, the market reacted unexpectedly: the price of the Secret token (SCRT) briefly surged nearly 6%, reaching $0.06. After a correction, the asset is trading around $0.058, maintaining a daily gain of about 3%. The market capitalization stands at approximately $20 million. However, it is worth noting that from its all-time high in October 2021 ($10.64), SCRT has fallen by 99.5% — a stark example of the volatility and risks inherent in the altcoin market.
My analysis: This case serves as yet another reminder that even in mature ecosystems like Cosmos, cross-chain bridges remain a weak link. The "infinite mint" vulnerability is a classic error in smart contract logic that could have been prevented with more thorough auditing. For investors, this is a signal: do not blindly trust tokens issued through bridges without understanding their backing. The market, as usual, quickly digested the news, but the fundamental risks for such projects remain high.