Kontigo, Backed by Coinbase, Faces Service Cuts Over Venezuela Sanctions Allegations

According to a report by the Wall Street Journal, Kontigo, a crypto fintech company previously backed by industry investors such as Coinbase Ventures, has become embroiled in controversy for allegedly facilitating the flow of funds in and out of Venezuela's economy. Disclosed materials indicate that stablecoins have gradually become an important means for settling Venezuela's oil exports, with some of the funds subsequently flowing into the country through local banks, over-the-counter channels, and licensed crypto trading platforms, including Kontigo. It is reported that institutions such as JPMorgan, Stripe, and Bridge have already cut ties with Kontigo's services, and some users have also reported restrictions on their PayPal payment channels on the platform. In addition, the company recently revealed that it had suffered a cyberattack, and its publicly listed on-chain wallet has seen a significant decline in recent transaction activity, drawing market attention to its operational status. Kontigo has stated that it is conducting an internal compliance review and emphasized its commitment to adhering to U.S. sanctions and relevant legal requirements.