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Secret Network proposes Arbitrum move after $4.7M exploit
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Secret Network proposes Arbitrum move after $4.7M exploit

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  • Secret Network (CRYPTO:SCRT) proposed migrating from Cosmos to Arbitrum after citing security risks, including AI-assisted code exploits.
  • SCRT fell 24% to about US$0.041 after the proposal was announced, while the migration remains subject to governance approval.
  • The team said the move aims to improve security, liquidity and developer access by joining the Ethereum ecosystem.

Secret Network (CRYPTO:SCRT) has proposed moving from the Cosmos blockchain to Ethereum (CRYPTO:ETH) layer-2 Arbitrum (CRYPTO:ARB) after citing growing security risks from ageing code and AI-assisted exploits following a US$4.7 million bridge exploit.

The proposal follows a June exploit of the Axelar-Secret IBC bridge that resulted in the loss of US$4.7 million in bridged assets without affecting SCRT, while the team also said liquidity and developer activity have declined across the Cosmos ecosystem.

“The security risk is the part we take most seriously,” the Secret Network team said.

The team said AI tools are making it easier to identify vulnerabilities in older smart contract code and argued that Arbitrum offers stronger liquidity, developer tooling, wallet support and exchange access, while outlining plans for a one-time SCRT balance snapshot on Sept. 1 to issue a new ERC-20 version of the token if the proposal is approved.

The proposal will be decided through a governance vote, and following the announcement the Secret Network token price was down about 24% at approximately US$0.041.

According to DefiLlama, Secret Network currently has about US$1.3 million in total value locked, while the broader Cosmos ecosystem holds around US$2 billion, down roughly 88% from its 2021 peak, compared with Arbitrum's US$17.4 billion in total value secured.

Secret Network joins several blockchain projects that have shifted away from Cosmos, including NilChain, Sei Network and Noble, as developers increasingly migrate applications toward Ethereum-compatible ecosystems.

At the time of reporting, Secret price was $0.04002.

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