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Secret Network Axelar Bridge Hack Results in $4.67M Loss via Infinite-Mint Exploit

Futuristic bridge links Secret Network and Axelar; glowing wrapped tokens spill from a vault, signaling an infinite mint exploit.

Secret Network’s Axelar–related bridge flow was hit by an “infinite mint” exploit that reportedly allowed an attacker to create unbacked wrapped assets and drain about $4.67 million, according to a CryptoTimes report citing Axelar’s announcement and a Common Prefix technical write-up.

Available reporting says the issue affected a modified cross-chain token contract on Secret Network rather than Axelar’s core network. Axelar said its network and IBC were not compromised, and that the vulnerable contract was not developed or maintained by Axelar. That distinction matters: the exploit appears to have targeted the minting logic for wrapped assets, not the interoperability network itself.

Tavily-captured coverage said the attacker exploited a missing verification step before minting, which let forged deposits produce real tokens without the normal backing. The same reporting said the attack occurred on June 10 and was only detected about a week later, after irregularities surfaced during a failed cross-chain transfer.

Common Prefix estimated the loss at $4.67 million. The available sources also said the attacker redeemed the minted saTokens into the underlying escrowed assets and then moved the proceeds to Ethereum, where funds were split across multiple wallets. Those movement details describe the reported path of the assets, but they do not by themselves explain the attacker’s intent or whether all proceeds remain traceable.

The reported affected assets included multiple Axelar-wrapped tokens, among them saUSDT, saUSDC, saDAI, saWETH, saWBTC and saBNB, with sawstETH also listed in the available coverage. The exact scope remains tied to the source material currently available, and additional confirmation from the projects would help clarify whether any other contracts or assets were affected.

For now, the key confirmed point is that the exploit centered on token-minting verification on Secret Network’s side, while Axelar said its own network remained intact. Further post-mortem details from the projects were not included in the available sources.