Stablecoin Company Kontigo Completes Full Reimbursement After Hack, Benefiting Over 1000 Users

Kontigo, a San Francisco-based stablecoin-focused fintech firm, announced that it has fully reimbursed over 1,000 users who were affected by a security breach. The company confirmed that it has processed $340,905 in reimbursements for the affected users by January 6. This follows a breach disclosed by the company on January 5.

The breach compromised the accounts of 1,005 users, leading to unauthorized access and the loss of stablecoins. Kontigo has taken swift action to isolate the affected systems and initiate the reimbursement process. The company assured users that 100% of the impacted amounts would be reimbursed, and the process is being handled on a case-by-case basis.

CEO Jesus A. Castillo personally experienced the breach and has vowed to hold the attackers accountable. Castillo stated in a public statement that the company knows who the hackers are and that they will face consequences. He emphasized that Kontigo represents an alternative of stability and financial progress for millions of people.

How Much Was Affected by the Security Breach

The security breach impacted approximately $340,905 worth of USDC, a stablecoin pegged to the U.S. dollar. The affected users were part of Kontigo's Latin American-focused platform, which has grown to over 1 million active users. The company has also engaged external cybersecurity specialists to review the incident and strengthen its security measures.

Kontigo's security team, together with independent experts, is conducting a thorough investigation into the breach. The company has implemented a reinforced monitoring scheme to ensure the integrity of its operations as systems are brought back online.

What Does This Mean for Kontigo's Growth Plans

The breach comes at a time when Kontigo was on a growth trajectory. In late December 2025, the company raised $20 million in a seed funding round led by FoundersX Ventures. The capital was intended to fuel product development and expand the firm's presence in emerging markets. Kontigo aims to scale its annual revenue from $30 million to $100 million within 60 days.

Despite the breach, the company has the financial capacity to absorb the loss. The $20 million seed funding provides a buffer to cover the cost of the hack without jeopardizing its operations. Castillo's leadership and the company's commitment to transparency have been highlighted as key factors in maintaining investor confidence.

Kontigo also faced banking challenges in late 2025 when its accounts were temporarily frozen by its U.S. bank partner. The company attributed the freeze to intermediary issues rather than direct action by the bank. These challenges underscore the regulatory risks associated with crypto-based financial services.

What Are the Reactions from CEO and Investors

Kontigo's CEO has taken a firm stance on the breach, emphasizing the company's commitment to security and user protection. Castillo's public statements have been seen as a reassurance to users and investors that the company is taking the incident seriously. The company has also been transparent about the steps taken to address the breach.

Investors and analysts are closely watching Kontigo's response to the breach. The company's ability to handle the situation effectively could influence investor sentiment and the trust of its user base. The reimbursement process and the reinforcement of security measures are seen as critical steps in maintaining the company's credibility.

Kontigo's reputation as a stablecoin-based financial platform could be tested as it navigates the aftermath of the breach. The company's focus on emerging markets, particularly in Latin America, positions it as a key player in the stablecoin ecosystem. However, the incident highlights the vulnerabilities inherent in digital financial services.

The broader stablecoin industry is also under scrutiny as incidents like Kontigo's breach raise questions about the security and reliability of stablecoin-based financial platforms. The industry's growth is closely tied to the perception of stability and trust, which makes the response to such breaches crucial for the future of stablecoins in global finance.