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The Ethereum Layer 2 network Kinto announced that it will close on September 30.
Ethereum Layer 2 network Kinto announced it will close on September 30, after its platform suffered a contract vulnerability attack on July 10, during which the attacker forged 110,000 Kinto Tokens and cashed out approximately 577 ETH (about 1.55 million USD), causing the platform's token to experience a big dump of about 95%. Although the team subsequently launched the “Phoenix” reboot plan in an attempt to restore operations, the new debts made financing unsustainable. Kinto founder Ramón Recuero pledged to provide compensation of up to 1,100 USD 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, ensuring user interests as much as possible. (TheBlock)