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- Kinto lost $1.55 million after attackers minted 110,000 tokens through a proxy exploit.
- The $K token price collapsed by almost 95% within 24 hours.
- Founder Ramon Recuero’s history with Babylon Finance raises questions about repeating patterns.
According to the report, Kinto’s token on Ethereum faced a brutal downfall on July 10. Attackers exploited a proxy backdoor to mint 110,000 $K tokens. They drained liquidity pools on Uniswap and Morpho, taking $1.55 million in assets. The price collapsed from $7.68 to $0.50 in a single day. The exploit used an ERC-1967 proxy contract vulnerability on the Ethereum network.
That was a weakness through which hackers minted tokens that were legitimate-looking but possessed no type of support. The minting accuracy was surprising. They didn’t inundate markets. They minted 110,000 tokens collectively and then sold. That level of control suggested knowledge of readily-available liquidity. Kinto’s response in the early going was unclear.
The company said it was investigating it through third-party companies. The founder later blamed it on skilled hackers and aging third-party code. He was, however, quick to add that Kinto’s own contracts were pristine. Critics questioned that point, as the end-user impact was a certitude regardless whose code the bug originated from.
Ethereum Community Divided on Cause of Kinto Hack
Japan’s securities regulator proposed shifting crypto regulation to its primary securities law to step up disclosure and investor protection. Kazakhstan’s financial regulator initiated a pilot to permit stablecoin transactions to be used to pay for regulatory fees in the first such case in the region.
The country reiterated that it would take on the OECD model from 2027 onwards in reporting residents’ foreign assets. The chainalysis 2025 adoption index placed India, the United States, and Pakistan at the top three markets after the very strong Asian and Latin American expansion.
Japanese publicly traded company Metaplanet increased Bitcoin holdings to 20,000 and revealed that it would purchase 210,000 BTC by 2027. Japan Post Bank announced that it would introduce its digital currency DCJPY by 2026.
Recuero’s Past Projects Cast Shadow on Kinto Collapse
Japan’s securities regulator proposed shifting crypto regulation to its primary securities law to step up disclosure and investor protection. Kazakhstan’s financial regulator initiated a pilot to permit stablecoin transactions to be used to pay for regulatory fees in the first such case in the region.
The country reiterated that it would take on the OECD model from 2027 onwards in reporting residents’ foreign assets. The chainalysis 2025 adoption index placed India, the United States, and Pakistan at the top three markets after the very strong Asian and Latin American expansion.
Japanese publicly traded company Metaplanet increased Bitcoin holdings to 20,000 and revealed that it would purchase 210,000 BTC by 2027. Japan Post Bank announced that it would introduce its digital currency DCJPY by 2026.
Related Reading: Bitcoin Treasury Fund Launches in Asia as Sora Ventures Targets $1B
