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Kontigo, a Venezuela-focused stablecoin neobank, says it will reimburse customers after hackers drained roughly $340,905 in USDC from user wallets in a security breach. In a Jan. 5 update, the San Francisco-based fintech — founded in 2023 and focused on Latin American customers and U.S. Latinos — confirmed it “detected unauthorized access that affected the funds of some users.” The company said it “immediately isolated the systems involved, activated our security protocols, and are maintaining an active investigation to determine the scope of the incident.” Kontigo’s follow-up update put the total loss at about $340,905 in USDC and said 1,005 users were impacted. While the firm has not yet published a full post-mortem explaining how the unauthorized access occurred, it said its security team is working with independent external cybersecurity specialists on a thorough review. Users took to social media last week to post screenshots of suspected unauthorized access attempts; Kontigo has not confirmed whether those reports are directly tied to the breach. The company said it will “reimburse 100% of the impacted amounts,” adding that restitution will be handled case-by-case in line with its security protocols. Kontigo also said it has implemented a “reinforced monitoring scheme” as systems are gradually restored. Kontigo offers USDC-denominated savings, cross-border payments, debit and credit cards, and tokenized access to U.S. stocks and Bitcoin. The startup recently closed a $20 million seed round valuing it at $100 million, and counts investors such as Y Combinator, DST Global and Coinbase Ventures. The incident comes amid a spate of high-profile crypto attacks. In December, Binance-owned Trust Wallet suffered a major exploit tied to its Chrome extension, with losses estimated at more than $7 million — Trust Wallet pledged to compensate affected users. On Jan. 5, blockchain security firm SlowMist warned of a widespread phishing campaign targeting MetaMask users and their seed phrases. Kontigo’s investigation is ongoing. Affected users should watch for official communications from the neobank and follow basic wallet security best practices — such as never sharing seed phrases and enabling available account protections — while details are being clarified. Read more AI-generated news on: undefined/news