Kontigo, a San Francisco-based neo bank catering primarily to Latin American users, has confirmed that it will fully reimburse customers impacted by a recent security breach that drained more than $340,000 in stablecoins from user-linked wallets.
In a public statement issued on January 5, the company said it had identified unauthorised access affecting a portion of its users’ funds.
Kontigo stated that it had “immediately isolated the systems involved” and activated internal protocols in response to the breach. An investigation is ongoing to assess the full scope of the incident, it added.
According to the latest internal estimates, around $340,905 worth of USDC was taken, impacting a total of 1,005 users.
Kontigo assured users that “100% of the impacted amounts” will be reimbursed and emphasised that the restitution process is being carried out on a case-by-case basis under enhanced security oversight.
The company has also deployed what it calls a “reinforced monitoring scheme” as it works to bring affected systems back online and maintain the integrity of ongoing operations.
At the time of writing, it remains unclear how the breach was executed, but Kontigo has enlisted independent cybersecurity experts to assist in its review.
The breach appears to have followed a spate of user reports on social media last week, where several customers shared screenshots indicating unauthorised login attempts and account activity.
Kontigo has not confirmed whether these individual cases were all directly linked to the larger exploit.
The hack comes merely weeks after the company raised a $20 million seed round in December 2025 with backing from notable names such as Y Combinator, DST Global, and Coinbase Ventures.
Following the investment, the company was valued at $100 million.
While the incident could raise concerns about Kontigo’s security infrastructure, the success of the restitution process could help restore confidence and bolster trust in the firm.
Bad actors target crypto wallets
The Kontigo breach is the latest in a string of high-profile security incidents that have shaken the crypto sector in early 2026.
In late December, Binance’s Trust Wallet extension for Chrome was compromised in a supply-chain attack that led to losses exceeding $7 million.
Trust Wallet has pledged to cover user losses and urged all customers to upgrade to the latest version.
Subsequently, on Jan. 5, security firm SlowMist flagged a widespread phishing campaign targeting MetaMask users with fake two-factor authentication prompts. The goal was to steal seed phrases through cleverly disguised scam domains and spoofed emails.
A day prior to this, some community members identified a parallel phishing threat, also targeting MetaMask users.
In this variation, scammers attempted to steal users’ secret recovery phrases by pushing a spoof security update.
Together, these incidents have put crypto wallet security under renewed scrutiny, as both centralised platforms and non-custodial solutions face increasingly sophisticated threats.
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