Secret Network cites AI exploit risks in proposed Arbitrum move
Secret Network is proposing to leave Cosmos and move its privacy-focused layer-1 to Arbitrum as an Ethereum layer-2. It says the biggest concern is security: aging code and bridges are becoming easier to attack as AI tools improve at analyzing contracts and finding vulnerabilities. A recent Axelar-Secret bridge exploit reinforced that risk. The team also argues Cosmos has weakened, with thinner liquidity, less reliable tooling, and projects and builders shifting elsewhere, while Arbitrum offers stronger liquidity, broader support, and a larger builder ecosystem. If approved by governance, Secret will take a one-time SCRT balance snapshot on Sept. 1 and issue a new ERC-20 SCRT token on Arbitrum. The move comes as Cosmos TVL has fallen sharply and Secret’s own TVL is small. SCRT fell sharply after the announcement.
