The post Kinto shutdown prompts first haircut for Wildcat lenders appeared on BitcoinEthereumNews.com. Less than two months after being hacked, decentralized finance (DeFi) platform Kinto has announced its decision to shut down “to protect users and community.” Kinto’s post-hack recovery plan, dubbed “Phoenix,” included raising $750,000 in crypto from private credit protocol Wildcat Finance, promising depositors 50% APR. The bridge loan turned out to be insufficient, however. Kinto explained that “the 577 ETH that were drained and new debt + market conditions killed further fundraising.” Lenders who deposited to the Phoenix market will take a 24% haircut, the first default for Wildcat creditors who have facilitated $368 million in loans since its public launch in February. 1/ 🛑 Kinto is shutting down. After exhausting every path to keep going, we’re conducting orderly wind-down to protect users and community. – Users can normally withdraw assets– Phoenix lenders receive ~76%– Morpho Victims can claim up to $1.1k each Read full details 🧵 — Kinto (@KintoXYZ) September 7, 2025 Read more: https://protos.com/just-another-day-in-defi-a-hack-a-rug-pull-and-10m-saved/ Kinto’s token, K, fell victim to an “industry-wide” vulnerability dubbed CPIMP on July 10, in which an attacker upgraded the token contract’s implementation to allow themselves to mint tokens. The subsequent sell-off of freshly minted tokens crashed the price of K and netted the attacker 577 ether (ETH), worth $2.5 million today per CoinMarketCap data. The foundation’s exchange liquidity will be used to repay Phoenix lenders, who will “recover ~76% of principal.” Additionally, Kinto founder Ramon Recuero is offering hack victims up to $1,100 from his own personal funds. Collateral damage Wildcat, which announced its latest $3.5 million raise on Friday, is an attempt to bring unsecured credit to a sector which can feel a lot like the wild-west of global finance. It aims to replace “the opaque credit daisychain of FTX, 3AC et al,” which imploded spectacularly in 2022, plunging crypto assets into… The post Kinto shutdown prompts first haircut for Wildcat lenders appeared on BitcoinEthereumNews.com. Less than two months after being hacked, decentralized finance (DeFi) platform Kinto has announced its decision to shut down “to protect users and community.” Kinto’s post-hack recovery plan, dubbed “Phoenix,” included raising $750,000 in crypto from private credit protocol Wildcat Finance, promising depositors 50% APR. The bridge loan turned out to be insufficient, however. Kinto explained that “the 577 ETH that were drained and new debt + market conditions killed further fundraising.” Lenders who deposited to the Phoenix market will take a 24% haircut, the first default for Wildcat creditors who have facilitated $368 million in loans since its public launch in February. 1/ 🛑 Kinto is shutting down. After exhausting every path to keep going, we’re conducting orderly wind-down to protect users and community. – Users can normally withdraw assets– Phoenix lenders receive ~76%– Morpho Victims can claim up to $1.1k each Read full details 🧵 — Kinto (@KintoXYZ) September 7, 2025 Read more: https://protos.com/just-another-day-in-defi-a-hack-a-rug-pull-and-10m-saved/ Kinto’s token, K, fell victim to an “industry-wide” vulnerability dubbed CPIMP on July 10, in which an attacker upgraded the token contract’s implementation to allow themselves to mint tokens. The subsequent sell-off of freshly minted tokens crashed the price of K and netted the attacker 577 ether (ETH), worth $2.5 million today per CoinMarketCap data. The foundation’s exchange liquidity will be used to repay Phoenix lenders, who will “recover ~76% of principal.” Additionally, Kinto founder Ramon Recuero is offering hack victims up to $1,100 from his own personal funds. Collateral damage Wildcat, which announced its latest $3.5 million raise on Friday, is an attempt to bring unsecured credit to a sector which can feel a lot like the wild-west of global finance. It aims to replace “the opaque credit daisychain of FTX, 3AC et al,” which imploded spectacularly in 2022, plunging crypto assets into…