Stablecoin neobank Kontigo hit by $340K USDC hack, vows 100% reimbursement

Source: Cryptonews Original Title: Stablecoin neobank Kontigo hit by $340K USDC hack, vows 100% reimbursement Original Link:

Kontigo USDC Security Breach Overview

Venezuela-focused stablecoin neobank Kontigo announced plans to compensate customers after over $340,000 in USDC was drained from customer wallets in a security breach.

Kontigo confirmed that they “detected unauthorized access that affected the funds of some users.” According to a Jan. 5 update, approximately $340,905 worth of USDC was reportedly stolen in the incident, and 1,005 users were affected.

“We immediately isolated the systems involved, activated our security protocols, and are maintaining an active investigation to determine the scope of the incident,” the announcement stated.

Investigation and Response

While an exact post-mortem of how the breach occurred is yet to be published, the neobank stated that its security team is working with independent external cybersecurity specialists to conduct a thorough review of the incident.

Last week, many of the company’s users took to social media to share screenshots showing unauthorized attempts to access their accounts.

“Kontigo will reimburse 100% of the impacted amounts,” the neobank stated, adding that the restitution process is being handled on a case-by-case basis in accordance with the firm’s security protocols.

Among other post-incident measures, the firm is also operating under a “reinforced monitoring scheme” as systems are gradually brought back online to ensure operational integrity.

About Kontigo

Founded in 2023, Kontigo is a San Francisco-based financial technology company that specifically targets the Latin American market and the Latino community in the United States. It offers stablecoin-based financial services such as USDC-denominated savings accounts, cross-border payments, debit and credit cards, and investment access to tokenized U.S. stocks and Bitcoin.

Kontigo is backed by major investors, including Y Combinator, DST Global, and Coinbase Ventures, and closed a $20 million seed funding round that valued the company at $100 million.

Broader Security Concerns

The latest incident comes as the industry remains on edge over a wave of large-scale attacks targeting crypto users. Last month, a major wallet provider’s Chrome extension became the victim of a significant exploit, with total losses estimated to surpass $7 million. The firm has publicly vowed to compensate all affected users.

Meanwhile, blockchain security researchers have recently raised alarms about major phishing campaigns designed to trick MetaMask users into giving up their seed phrases under the guise of activating Two-Factor Authentication.