Kontigo Hack: $340K USDC Stolen, Full Reimbursement Promised

Kontigo neobank suffers a security breach of 1,005 users, costing the bank $340K USDC. The company will completely reimburse and cooperate with cybersecurity specialists to examine the incident.

On January 5, Kontigo noticed that its systems had been broken into. The hack undermined user capital on the platform. The firm put security measures into action and isolated the affected systems instantly.

On the X post by Kontigo, 1,050 users were affected by the breach, which caused a cumulative loss of 340,905.28 USDC. These numbers were verified by the neobank after the initial verification.

Source: Kontigo

Kontigo said, We immediately isolated the systems involved. The company initiated an active investigation and brought outside cybersecurity experts to conduct a thorough review.

Users Report Suspicious Activity Before Breach

There were suspicious activities reported by users before the official announcement of the breach. Unauthorized access attempts were disclosed in social-media posts as screenshots. What is not clear is the relationship between these initial reports and the verified breach.

Kontigo reacted by isolating all systems immediately and turning on security measures on all platforms. To sustain continuous business, the company has put in place a strengthened monitoring plan.

The company announced on X that 100% of the affected amounts would be reimbursed by Kontigo. The restitution process will be done on a case-by-case basis, and any refund will be made in accordance with the set security measures.

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Investigation Continues with Expert Support

The cybersecurity team is working with external cybersecurity experts. The extent of the breach is also under careful scrutiny, and systems are slowly coming back online under increased supervision.

Kontigo has invited other users who may have been affected to come forward. The company said on X, If you suspect that your account might be compromised and you have not reported it yet, comment on this post. The team assured a quick response to all reports.

The San Francisco headquartered firm provides Latin American markets with savings accounts in the US dollar, payment across borders, debit cards, credit cards, and stock investments in tokens.

Kontigo was established in 2023 and last month raised 20M. The seed round estimated the company to be worth 100 million. Investors would be Coinbase Ventures, DST Global, and Y Combinator.

Crypto Industry Faces Rising Security Threats

This event comes after recent hacks in the crypto industry. In December, Trust Wallet was exploited in a hack costing it $7M, with a Binance-owned wallet targeted at Chrome extension users.

On January 5, SlowMist detected a significant phishing campaign directed at MetaMask users. The fraudsters masqueraded as two-factor authentication activation requests.

Kontigo planned its next update at 7:00 pm Venezuelan time. The company has open communication with impacted users, and its security is always the priority when restoring its systems.

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