Axelar Network: Security incident stemmed from a vulnerability in a third-party token contract allowing unlimited minting.

Odaily Planet Daily reports that cross-chain protocol Axelar Network issued a statement clarifying that there has been a misunderstanding in the community regarding recent security incidents. Neither Axelar Network itself nor the IBC protocol was attacked or compromised, and the affected token smart contracts were not developed, deployed, or maintained by Axelar Network. The exploited contract was a fork based on CW20-ICS20, in which the developers removed two core security checks, leading to an infinite minting vulnerability. This fork removed the verification mechanisms originally designed to prevent such issues, altered the contract's original trust model, and was not subject to a new security audit.