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Axelar responds to security incident: Axelar and IBC are unaffected, the vulnerability originates from a third-party token contract's "infinite minting" issue

The cross-chain protocol Axelar Network released a statement regarding the recent security incident related to Secret Network, stating that there is a misunderstanding within the community about the event. Both Axelar and the Inter-Blockchain Communication Protocol (IBC) were not attacked or compromised. The affected token smart contracts were neither developed, deployed, nor maintained by Axelar, and Axelar's firewall mechanism also prevented the impact from spreading to other chains.It is reported that the exploited contract is a forked version based on CW20-ICS20, but the developers removed two core security checks, resulting in an "infinite minting" vulnerability. By deleting the verification mechanisms originally used to prevent such issues, this fork altered the original trust model of the contract and did not undergo a new security audit.Axelar Network explained that anyone can deploy contracts for cross-chain asset wrapping through IBC, and similar contracts have also been used to wrap tokens from other chains into Secret Network. However, the Secret side fork version in this incident has vulnerabilities due to the removal of key security checks. This incident is not a unique logical flaw, nor is it an issue with the IBC protocol itself, but rather a security risk introduced by modifications to third-party contracts.

The Japanese Liberal Democratic Party's parliamentary alliance submitted a Web3 policy proposal, calling for the inclusion of blockchain in the national strategy

The Liberal Democratic Party's Blockchain Promotion Parliamentary Alliance in Japan submitted a policy proposal to Finance Minister Katsuyuki Kitayama, calling for the clear inclusion of blockchain and Web3 in the national strategy. The proposal covers multiple areas including tax reform, cryptocurrency ETFs, leveraged trading regulation, responses to unregistered operators, cryptocurrency strategy, and trade logistics. Among them, the proposal suggests further research on the choice mechanism for "declaration separation taxation" and "withholding separation taxation" for crypto assets, and explores the tax treatment methods for exchanges and inheritance of crypto assets.In terms of derivatives regulation, the proposal believes that the current 2x leverage limit for individual cryptocurrency trading is too low and suggests gradually increasing the leverage level in conjunction with margin management systems. At the same time, the proposal also calls for a clear positioning of the cryptocurrency ETF system and strengthening law enforcement cooperation with overseas regulatory agencies. Katsuyuki Kitayama stated that he will actively promote the construction of related systems, including facilitating the implementation of cryptocurrency ETFs and researching a new tax system to be implemented in January 2028.

The U.S. Republican Party is dissatisfied with Fairshake's wait-and-see attitude towards the midterm elections and demands clear support

According to Axios, American Republicans are increasingly dissatisfied with the flow of political donations in the cryptocurrency industry, demanding that the pro-crypto super PAC Fairshake, which holds about $165 million in funds, clarify its stance and focus on supporting Republican candidates in the 2026 midterm elections.Republicans pointed out that, against the backdrop of significant progress in promoting pro-crypto legislation such as the CLARITY Act, Fairshake has yet to announce specific election investment plans, which is disappointing. The points of contention include:Ohio Democratic Senate candidate Sherrod Brown: Fairshake spent over $40 million in 2024 to defeat incumbent Senator Brown, but Brown's attitude towards the cryptocurrency industry has noticeably softened in recent years.New Hampshire Congressman Chris Pappas: His Stand With Crypto rating rose from "F" to "A" within 8 months, and Republicans initially expected Fairshake to focus on his campaign.In response, Fairshake supporters stated that it is still too early to speak out and emphasized that the PAC is bipartisan in nature, aiming to "reward supporters and punish critics," rather than unconditionally supporting a particular party. Some pro-crypto Republicans (such as the Winklevoss brothers) have established separate independent groups specifically to support Republican candidates.
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