Coinbase-supported Kontigo faces service cuts from multiple financial institutions due to Venezuela sanctions controversy

Deep Tide TechFlow News, February 2nd, according to The Wall Street Journal, the crypto financial technology company Kontigo, which previously received investments from industry institutions such as Coinbase Ventures, has become controversial for allegedly assisting in the flow of funds into and out of the Venezuelan economic system. According to related disclosures, stablecoins are gradually becoming an important method for settling Venezuela’s oil exports, with some funds subsequently flowing through local banks, over-the-counter channels, and licensed crypto trading platforms, including platforms like Kontigo. It is reported that institutions such as JPMorgan, Stripe, and Bridge have since cut off services with Kontigo, and some users have reported restrictions on PayPal payment channels on its platform. The company also recently disclosed that it was targeted by a hacker attack. Currently, its on-chain wallet transaction activity has significantly decreased, and market attention is focused on its business operations. Kontigo revealed that it is conducting an internal compliance review and emphasized its commitment to complying with U.S. sanctions and relevant legal requirements.