Kontigo Hit by Second Cyberattack in 2026

Venezuela’s rising fintech star Kontigo just got slammed by another cyberattack, forcing the company to shut down its platform and leaving users in limbo. This second breach in days has sparked fears about digital wallet safety in unstable economies. What’s next for the startup that promised secure money transfers?

Kontigo detected hackers tampering with wallet authentication details on January 8, 2026. The company quickly activated emergency protocols to stop the attack. They paused all platform access to protect user funds.

In a post on their X account, Kontigo explained they spotted the unauthorized attempts and contained the threat. Co-founder Jesus Castillo stepped up, pledging to cover any damages personally. This move aims to reassure customers, but some users reported drained accounts with no transaction history.

This is the second cyberattack on Kontigo in 2026, coming just days after a January 5 hack that stole about $340,000 in USDC stablecoin from over 1,000 users.

The fintech, focused on Venezuela’s tough economic scene, has been a lifeline for people dodging hyperinflation. Now, these back-to-back hits raise big questions about its security.

Details of the Attacks Emerge

The first attack on January 5 hit hard, draining $340,000 worth of USDC from 1,005 customer wallets. Kontigo acted fast, promising full refunds and reimbursing everyone affected within days. Even the CEO’s own account got compromised, showing no one was safe.

This new incident targeted authentication processes, the keys to user wallets. Hackers tried to bypass logins without leaving clear traces. Kontigo says they stopped it before major losses, but users are worried about hidden damage.

Experts point out that such attacks often use phishing or malware to steal credentials. In Venezuela, where internet is spotty and regulations are loose, fintechs like Kontigo face extra risks.

Kontigo’s team is now rolling out a security update. They plan to restore access soon, but only after thorough checks.

Here are key differences between the two attacks:

• January 5 Hack: Direct theft of $340,000 USDC from wallets, affecting 1,005 users.
• January 8 Breach: Focused on authentication compromise, contained with no confirmed major theft yet.
• Response Time: Both times, Kontigo reacted within hours, pausing services to limit harm.

This pattern shows hackers might be testing the company’s defenses repeatedly.

Background on Kontigo’s Rise and Challenges

Kontigo started as a Y Combinator-backed startup, raising $22 million in 2025 to build a stablecoin-based banking app for Latin America. It targets Venezuelans who need reliable ways to store and send money amid currency chaos.

The app lets users hold USDC, a stable digital dollar, in wallets linked to their phones. This has helped thousands avoid wild inflation rates, which hit over 65% in Venezuela last year according to the Central Bank.

But success brought scrutiny. Just months after its funding round, Kontigo faced account freezes from big banks like JPMorgan Chase over compliance issues. Now, these cyberattacks add fuel to doubts about crypto fintechs in risky markets.

Backed by top investors, Kontigo promised ironclad security, but these breaches expose cracks in the system.

A 2025 study by cybersecurity firm Chainalysis found that Latin American crypto platforms saw a 40% jump in hacks, with losses topping $1 billion region-wide. Kontigo’s case fits this trend, highlighting the need for better defenses.

Impact on Users and the Fintech World

For everyday users in Venezuela, this mess disrupts vital services. Many rely on Kontigo for remittances from family abroad or daily transactions. One user shared on social media how the pause locked them out of funds needed for groceries.

The breaches could scare off new customers, slowing Kontigo’s growth. Analysts say trust is everything in fintech, and repeated hacks might push users to rivals.

On a brighter note, Kontigo’s quick refunds after the first attack show commitment. They reimbursed all $340,000 plus extra for inconvenience, setting a positive example.

Wider effects ripple through the industry. Other startups might beef up security, like adding multi-factor authentication or AI monitoring. Regulators in Venezuela and the US could step in with tougher rules for crypto firms.

These events surprise many, as Kontigo touted advanced encryption. Yet they spark hope for stronger systems ahead, turning a setback into a push for innovation.

These cyberattacks on Kontigo hit close to home, reminding us how fragile digital money can be in a world of rising threats. They highlight the urgent need for robust protections while offering a glimmer of resilience as the company fights back and vows to emerge stronger.