Kinto (Ok) introduced it’s shutting down after failing to get well from a sequence of blows, together with a $1 million debt burden and the lingering results of a July exploit.
Kinto Shuts Down: All the things Customers Have to Know
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The DeFi undertaking revealed the choice in a press release posted to X (Twitter), conceding that it had exhausted each attainable avenue to proceed. With each effort proving unsuccessful, it’s now conducting an orderly wind-down.
1/ 🛑 Kinto is shutting down.
After exhausting each path to maintain going, we’re conducting orderly wind-down to guard customers and group.
– Customers can usually withdraw property
– Phoenix lenders obtain ~76%
– Morpho Victims can declare as much as $1.1k every
Learn full particulars 🧵
— Kinto (@KintoXYZ) September 7, 2025
The undertaking emphasised that customers can nonetheless withdraw their property till September 30. In the meantime, Phoenix lenders will get well round 76% of their principal.
Morpho victims, who have been hit hardest by the July exploit, can declare as much as $1,100 every from a goodwill fund arrange by the founder.
“It’s time to accept reality. I pursued this venture to the best of my ability, but didn’t achieve a successful outcome. The CPIMP exploit was a black swan, yet I am contributing over $130,000 to offer relief to affected users,” acknowledged Kinto founder Ramon Recuero.
The undertaking pressured that whereas its wallets, Layer-2 infrastructure, and core programs have been by no means hacked, the July CPIMP proxy exploit drained 577 ETH. Reportedly, this compelled Kinto to boost debt in a determined try to get well.
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The incident induced the Ok worth to drop by over 90% on July 10. For the reason that announcement to close down, the Kinto ecosystem’s powering token has decreased by over 85%.
Kinto (Ok) Value Efficiency. Supply: TradingView
Market circumstances, mixed with the brand new liabilities, in the end killed its possibilities of additional fundraising.
“The team has been unpaid since July. It’s time to face reality and shut down responsibly,” the undertaking stated.
What Customers Want To Do Amid Withdrawal Problem
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The sudden closure has sparked backlash from some customers, with some slamming the Ethereum L2 for winding down after getting cash.
Nonetheless, Kinto insists that neither the crew nor buyers had unlocked a single token, disputing the concept the shutdown was a rug pull.
Present how we made the cash please. Crew and buyers haven’t unlocked a single token
— Kinto (@KintoXYZ) September 7, 2025
Different customers name for leeway to withdraw their property, so Kinto urged customers to submit requests for help to buyer help.
“Create a help ticket in Discord if you ned help withdrawing,” Kinto famous.
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Safety researchers are reportedly nonetheless tracing the stolen 577 ETH, with Kinto pledging that any restoration will first go to the victims.
A perpetual declare contract can be anticipated to deal with excellent withdrawals and repayments in early October.
In opposition to this backdrop,Kinto has begun consolidating roughly $800,000 of the remaining property right into a Basis SAFE. Allegedly, all funds are earmarked to repay collectors and victims.
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Regardless of the wind-down, the undertaking additionally confirmed that the pending ERA crypto airdrop will nonetheless be distributed in October.
9/ Remaining Airdrops
The ERA airdrop will nonetheless be distributed on mainnet once we obtain it (goal Oct 15).
— Kinto (@KintoXYZ) September 7, 2025
Whereas Kinto insists it’s shutting down responsibly, the collapse is a stark reminder of the fragility of early-stage DeFi tasks.
