Catenaa, Sunday, January 11, 2026- Latin America–focused stablecoin banking startup Kontigo confirmed it reimbursed 1,005 users for a security breach over the weekend, covering $340,905 in stolen stablecoins.
The incident affected the company’s co-founder and CEO, Jesus A. Castillo, whose personal account was also compromised. Castillo framed the breach as a targeted attack on both leadership and customers, warning that the perpetrators have been identified and will face consequences.
Kontigo disclosed the incident on Jan. 5 and completed reimbursements by Jan. 6. The startup said it took full responsibility and emphasized the continuity of its operations, describing the platform as an alternative for financial stability in emerging markets.
The breach comes amid a period of rapid growth for the firm. In late December, Kontigo closed a $20 million seed funding round led by FoundersX Ventures and announced plans to expand its Silicon Valley headquarters. The startup, founded less than a year ago, claims more than 1 million active users, $30 million in annualized revenue, and over $1 billion in processed payment volume.
Kontigo’s growth has coincided with banking access challenges. In December, intermediary banking disruptions reportedly froze accounts linked to Kontigo and another Y Combinator-backed stablecoin startup, BlindPay. Castillo denied claims that chargebacks were the cause, attributing the issue to the intermediary rather than JPMorgan Chase.
