Kinto’s Grand Exit: A $1.9M Hack, 85% Price Plunge, and a Dash of Drama 🎭💸

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Darling, gather round, for the tale of Kinto, an Ethereum Layer-2 project that’s gone from darling of DeFi to a cautionary cocktail of catastrophe. 🍸✨ After a rather spectacular exploit in July-where 577 ETH (a cool $1.9 million, mind you) vanished faster than a Coward quip at a dull party-the project has announced its grand finale, shutting down this month. Bravo, bravo! 👏

  • The Kinto price? Down 80%, darling, and still tumbling like a tipsy socialite down a staircase. 💃💎
  • Phoenix lenders, bless their hearts, will recover a mere 76% of funds, while hack victims are tossed a $1,100 goodwill grant. How generous! 🙄
  • Withdrawals? Open until Sept. 30, of course. And an Ethereum claim contract? Coming in October, just in time for spooky season. 🎃

On Sept. 7, Kinto took to X (formerly Twitter, darling, keep up!) to announce its swan song, blaming the July exploit for leaving them financially shipwrecked. 🌊💔 The K token, once a darling of the crypto set, has since slid 85% in 24 hours-and a staggering 94% in the past month. Oh, the drama! 🎭

From Exploit to Exit: A Farce in Three Acts

The whole fiasco began with a vulnerability in the ERC-1967 Proxy standard, a codebase as reliable as a Coward character’s fidelity. 🕳️ 110,000 fake Kinto tokens were minted on Arbitrum, used to drain Uniswap and Morpho vaults faster than a Coward martini. Shaken, not stirred, indeed! 🍸

Enter the “Phoenix Program,” a valiant effort to raise $1 million in debt and stabilize operations. But darling, debt, weak markets, and shattered investor confidence proved too much. Fundraising? Stalled. Team salaries? Non-existent since July. It’s all rather tragic, isn’t it? 😢

Reimbursement and the Grand Finale

Kinto has stashed $800,000 in a foundation-controlled safe-how very responsible! 🏦 Phoenix lenders will recover 76% of their principal, while Morpho hack victims get a $1,100 grant from founder Ramon Recuero’s personal coffers. How quaint! 🧑‍🎤

Users, take note: Withdrawals until Sept. 30, an Ethereum claim contract in October, and an ERA airdrop on Oct. 15. It’s all very organized, considering the chaos. 📅✨

A Cautionary Tale for DeFi Darlings

Kinto’s closure is a sparkling reminder of the risks in Layer-2 and DeFi, especially for those relying on upgradeable smart contracts. Stricter security? Better treasury protections? Sustainable yield models? Yes, darling, we need it all. 🚨

And so, Kinto exits stage left, with a promise to “shut down responsibly” and fight for recoveries. Bravo, old sport, bravo. Curtain down. 🏁🎭

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2025-09-08 07:11