Kinto announced its closure after a July Arbitrum exploit and prolonged financial issues, pledging partial repayment to Phoenix lenders and limited victim compensation through the CVR protocol.
Kinto will shut down after losing 577 ETH in a July Arbitrum CPIMP proxy exploit and facing ongoing financing and debt challenges that left the team unpaid. The platform has around $800,000 in remaining assets, which will be used to repay Phoenix lenders at approximately 76% of principal. The founders will contribute $55,000, enabling victims to receive up to $1,100 per address and join recovery efforts via the CVR protocol. Withdrawals from Kinto wallets remain open until September 30, and the ERA airdrop will be distributed on October 15.