Ethereum Layer 2 network Kinto announced it will close on September 30, after its platform suffered a contract vulnerability attack on July 10, where the attacker forged 110,000 Kinto tokens, cashing out about 577 ETH (approximately 1.55 million USD), causing the platform's token to plunge by about 95%. Although the team subsequently launched the 'Phoenix' restart plan in an attempt to resume operations, the new debts made financing difficult to maintain. Kinto founder Ramón Recuero pledged to provide up to $1,100 compensation per address to users with bad debts on Morpho using personal funds. The platform will return 76% of the principal to Phoenix borrowers, and the remaining assets will also be used for compensation. He stated that the platform will be shut down in an orderly manner and will try to protect user interests as much as possible. (TheBlock)
