Latin America-based fintech firm Kontigo announced on Monday that it will reimburse more than 1,000 customers who were hacked, following a loss of approximately $340,905 in stablecoins.
The Venezuelan platform had earlier stated that it had acknowledged unauthorized access and acted quickly to secure its infrastructure and customers’ funds. It shut down systems that had been hijacked, activated its security procedures, and informed customers that they’d be compensated.
Neobank Kontigo assures safety of funds
In posts on its official X account, Kontigo assured users that all affected funds are protected under the company’s reimbursement policy and confirmed full reimbursement for losses arising from the breach. Users impacted by the incident were instructed to contact support for personalized assistance. “We will resolve this in the next few hours; you can count on it,” Jesús A. Castillo, the firm’s chief executive, said in a separate statement,
On X, Kontigo assured users again: “Kontigo will refund 100% of the affected amounts,” adding that the next update will be at 7:00 p.m. VE. In its earlier posts, the platform stated that its chief executive was among the affected individuals and urged those impacted to comment for personalized support. The platform also reminded its users of common security precautions, noting that fraudsters often use something like this to trick victims.
It also added that the platform will not require them to provide any sensitive data privately. Shortly thereafter, Castillo stated that the firm had tracked down the hackers and warned that there would be consequences, but he did not provide further details. He also noted that the platform serves as a dependable option for financial progress and stability — and would continue to do so even after the incident.
Kontigo offers a comprehensive app for individuals in emerging economies who face challenges accessing traditional financial services. The platform now lets users save in USDC, Circle Internet Group’s dollar-backed stablecoin, spend it locally, and invest in Bitcoin. The company also offers a USDC Visa credit and debit card that yields an 8% return.
However, Kontigo’s incident raises questions about proponents’ assertions that stablecoins provide a safer place for funds than bank accounts. Banks in the United States are insured for $250,000 as part of their clients’ guarantees, and there’s no safety net for the clients of unregulated startups.
The post Neobank Kontigo plans $340K reimbursement after stablecoin hack first appeared on Coinfea.