Key Notes
- Kontigo will reimburse 100% of the $340,000 in USDC lost in a breach impacting 1,005 users.
- The neobank detected unauthorized access and immediately isolated affected systems.
- Services are being restored gradually under a strict monitoring framework.
Latin America-focused stablecoin neobank Kontigo has confirmed plans to fully reimburse customers following a security breach that drained more than $340,000 in USDC from user wallets.
According to a Bloomberg report citing the company’s official statements, the incident affected 1,005 users, making it one of the most significant consumer-facing crypto security events in the region this year.
Kontigo said that it detected unauthorized access impacting customer funds and immediately moved to contain the situation.
The firm stated that the affected systems were isolated as soon as suspicious activity was identified, while internal security protocols were activated to prevent further losses.
It is important to note that an investigation is still ongoing to determine the exact scope and cause of the breach.
Kontigo Confirms Full Reimbursement
In the public update, Kontigo assured users that 100% of impacted funds will be reimbursed, with restitution carried out on a case-by-case basis in line with its security procedures.
The neobank also added that it is gradually restoring services under a strict monitoring framework. The goal is to restore activities without increasing the risks of further attacks.
As part of the response, Kontigo’s internal security team is also working alongside independent external cybersecurity specialists to conduct a comprehensive review of the breach.
User Reports and Ongoing Review
In the days leading up to Kontigo’s confirmation, several users posted screenshots online showing unauthorized login attempts on their accounts.
While the company has not officially linked these reports to the breach, it said that it is validating each case individually.
Users who believe their accounts may have been affected have been encouraged to report the issue directly to receive immediate follow-up.
An official post shared by the company read that all affected customers will be made whole and user funds remain protected despite the incident.
The firm added that additional updates would be provided as the investigation progresses.
About Kontigo
Founded in 2023, Kontigo is a San Francisco-based fintech company serving Latin America and the Latino community in the United States.
Its platform offers USDC-denominated savings accounts, cross-border payments, payment cards, and access to tokenized US equities and Bitcoin.
The startup is backed by prominent investors and recently closed a $20 million seed round, valuing the company at $100 million.
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A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
Parth Dubey on LinkedIn
Source: https://www.coinspeaker.com/latin-americas-stablecoin-bank-kontigo-to-compensate-customers-post-hack/
