Stablecoin company Kontigo completes full compensation after being hacked, covering over 1,000 users

The stablecoin banking startup Kontigo, focused on the Latin American market, announced that it discovered and quickly blocked a security vulnerability over the weekend and has completed full compensation for 1,005 affected users, totaling $340,900 in stablecoins. Co-founder and CEO Jesus A. Castillo stated that his personal account was also compromised and described it as a direct attack on the company's management and users.

Castillo posted on the X platform that the company has identified the attacker and that the individuals "will not escape consequences." This security incident occurred during Kontigo's rapid expansion phase. Just weeks ago, on December 22, the company announced it had completed a $20 million seed round led by FoundersX Ventures, with funds intended for product development and expansion into emerging markets.

Founded less than a year ago, Kontigo has the support of Y Combinator. The company claims to have achieved an annualized revenue of $30 million in the past 12 months, processed payments exceeding $1 billion, and surpassed 1 million active users, all with a team of just 7 people. However, Kontigo has also faced scrutiny over "de-banking" issues. Media reports indicated that bank accounts used through intermediaries were frozen due to compliance risks, but Castillo denied the allegations, stating that the issues originated from the intermediary agencies, not the banks themselves.