Axelar confirmed a $4.7 million exploit on its Secret Network bridge, marking the latest in a series of cross-chain security incidents. The company said it identified the root cause and is working with security partners to trace the stolen funds. Bridge-related losses have topped $340 million this year.
Cross-chain protocol Axelar lost $4.7 million after an attacker exploited its bridge to Secret Network, the company said Thursday.
"We have identified the root cause and are working with security partners to trace the funds," an Axelar spokesperson said.
The attacker drained assets from the bridge connecting Axelar's interoperability layer to Secret Network, a Cosmos-based blockchain designed for private smart contracts. The exploit adds to a year in which bridge-related losses have topped $340 million, according to data from blockchain security firms. Earlier this week, Aztec's deprecated Private Rollup Bridge was drained of $2.1 million in a separate incident, with security researchers at SlowMist and BlockSec linking both attacks to vulnerabilities in withdrawal mechanisms.
The Secret Network bridge enables private transactions between Cosmos-based chains and other ecosystems. Blockchain tracking data shows the stolen funds were moved through multiple wallet addresses following the breach, complicating recovery efforts. Security firm BlockSec said the attack method appeared to target the bridge's transaction validation process, though the specific vulnerability has not been disclosed.
Axelar operates a decentralized interoperability network connecting multiple blockchain ecosystems. Secret Network, built on Cosmos, uses trusted execution environments to enable encrypted smart contracts. The bridge between the two protocols had been a key route for private cross-chain transactions.
The hack highlights persistent risks in cross-chain infrastructure, where complex smart contract logic and pooled liquidity create attractive targets. Axelar's AXL token and Secret Network's SCRT token face potential selling pressure as investors reassess the security of bridging protocols that connect disparate blockchain ecosystems. The incident is likely to intensify calls for stronger security standards across interoperability platforms, including formal verification and real-time monitoring systems, as bridge protocols remain one of the most vulnerable components in decentralized finance.
This article is for informational purposes only and does not constitute investment advice.
