Kontigo Security Breach: Hackers Steal $340,000 in USDC as Neobank Reimburses Over 1,000 Users

Rabat – Venezuela-focused stablecoin neobank Kontigo has announced plans to fully compensate its customers after a security breach resulted in the loss of more than $340,000 in USDC from user wallets, according to a company update shared yesterday on X.

Kontigo said it detected unauthorized access that affected customer funds and moved quickly to contain the incident.

The firm stated that it immediately isolated the affected systems, activated internal security protocols, and launched an active investigation to determine the scope of the breach.

The stolen funds were held in USDC, the dollar-pegged stablecoin widely used for payments and savings in crypto-based financial services.

In a subsequent update, the company confirmed that approximately $340,905 worth of USDC was drained and that 1,005 users were impacted.

Kontigo said the reimbursement process has been completed, confirming that all affected customers have been fully refunded, with the returned amounts already reflected in user wallets.

The neobank has not yet published a detailed technical explanation of how the breach occurred. It stated that its internal security team is working alongside independent external cybersecurity specialists to conduct a comprehensive review.

In the days surrounding the incident, some users reported unauthorized login attempts on social media, though the company has not confirmed whether those reports are directly linked to the breach.

Kontigo added that it is operating under a reinforced monitoring framework as systems are gradually brought back online.

The company said the additional safeguards are aimed at ensuring operational integrity and restoring user confidence while the investigation continues.

Founded in 2023, Kontigo is a San Francisco-based fintech company focused on serving users in Latin America and the Latino community in the United States.

Its services include stablecoin-based savings accounts, cross-border transfers, payment cards, and access to tokenized US stocks and Bitcoin.

The company is backed by investors including Y Combinator, DST Global Partners, and Coinbase Ventures, and it closed a $20 million seed round last month that valued the firm at $100 million.

The incident comes amid heightened concern over security in the crypto sector following recent attacks on users and wallets.

Last month, Trust Wallet, owned by Binance, reported losses exceeding $7 million linked to an exploit affecting its Chrome extension.

On January 5, blockchain security firm SlowMist also warned of an active phishing campaign targeting MetaMask users, pointing to ongoing risks across the industry.