Stablecoin Neobank Kontigo to Fully Repay Users After $340K Hack

Highlights:

• Stablecoin neobank Kontigo has confirmed a loss of $340,905 due to a security breach.
• On January 5, there was unauthorized access that impacted 1,005 users.
• Kontigo has promised to reimburse affected users and has also initiated a full investigation.

On January 5, stablecoin neobank Kontigo suffered a security breach that affected more than 1,000 users. About 340,905 USDC was drained out of user wallets. The company was quick to respond and assured full reimbursement on all the affected accounts.

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Users initially reported suspicious logins, and a wave of panic erupted. Later that day, Kontigo confirmed unauthorized access to its systems. Jesus A. Castillo, the CEO, who was also affected by the breach, pledged to promptly resolve the issue. The company instantly isolated the systems that were compromised and initiated an internal investigation.

Response, Security Measures, and Investigations

Kontigo responded promptly and implemented internal security measures, and engaged external cybersecurity experts. In addition, other external experts, including Chainalysis, were called to trace the stolen USDC to the Polygon and Ethereum networks. The company confirmed that 1,005 users were affected and pointed out that every case is under consideration. The process of restitution is being carried out, and the users are being assisted by support teams to recover funds safely.

Detectamos un acceso no autorizado que afectó fondos de algunos usuarios. Tus fondos están protegidos y cualquier monto afectado será repuesto por Kontigo.

Próxima actualización: 2:00 p.m. VE pic.twitter.com/Opw2SqB8G6

— Kontigo.com (@kontigo_app) January 5, 2026

In an effort to improve security, Kontigo deployed real-time monitoring, and systems gradually returned online. It also advised users against sharing sensitive information over SMS or direct messages, as it would never ask them to provide credentials through those channels.

Although the breach methodology is not disclosed, Kontigo announced that the hackers were identified. Additional updates are anticipated. The platform is currently running on reinforced oversight and maintains open dialogue with the affected users.

Stablecoin Neobank Kontigo’s Role in the LATAM Fintech Space

Kontigo operates in a delicate environment. The application focuses on Latin American users, especially in countries such as Venezuela, where the stablecoins are used to substitute dollars due to inflation. It provides savings, payments, and investments in tokenized U.S. stocks and Bitcoin.

The hack took place only two weeks following the $20 million seed round by Kontigo. The round was led by venture capitalists such as Y Combinator, Coinbase Ventures, and DST Global, and it valued the company at $100 million. This balance cushion enables Kontigo to counter the reimbursement without compromising the operations.

It had over 1 million users and processed more than $1 billion in transactions by the end of 2025. The company allows saving in USDC and provides credit and debit cards that have a yield of up to 8%. Towards the end of 2025, Kontigo was suspended from providing U.S.-based banking services to Venezuelan customers at the request of its U.S. bank partner. Such a disruption demonstrated the regulatory complexity of such platforms. Kontigo did not provide any timeline for restoration but reaffirmed its dedication to users.

¡Hola a todos! Nuestro proveedor de cuentas americanas solicitó una pausa del servicio temporalmente.

Estamos trabajando en encontrarles una solución!!!🙏🏻🧡

Nuestro compromiso sigue intacto, con ustedes y con el país🇻🇪

— Kontigo.com (@kontigo_app) November 21, 2025

Growing Concerns Across the Crypto Industry

This hack contributes to an increasing list of crypto-related attacks. Binance-owned Trust Wallet recently suffered an exploit worth $7 million. Users of its Chrome browser extension were targeted, resulting in big losses. Trust Wallet has, however, promised to compensate victims.

The similarities point to a broader issue regarding the weaknesses in crypto-financial systems. Furthermore, these recurring breaches underscore the necessity of continuous security investment and data protection measures.

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