Fintech Recap (Bonus): The Rise and Fall of Kontigo

Jan 21, 2026

Jason Mikula, an investigative reporter and expert on Latin American sanctions evasion, dives into the fascinating rise and fall of Kontigo, a crypto-fintech startup in Venezuela. He unpacks how Kontigo's innovative USDC solutions catered to users in a hyperinflated economy while grappling with regulatory challenges. The discussion reveals the dark side of rapid growth, linking it to potential money laundering and compliance risks. Listeners will be captivated by tales of the CEO's bizarre marketing antics and the murky accountability landscape within the fintech ecosystem.

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INSIGHT

Sanctions Are A Distinct Geopolitical Tool

Sanctions and AML are related but distinct regulatory regimes with different purposes and enforcement mechanisms.
Jason Mikula warns that sanctions are geopolitical tools implemented through financial institutions and US persons must follow them.

ANECDOTE

How Contigo Worked For Venezuelan Users

Contigo let Venezuelans receive USD, convert to USDC, and off-ramp to bolívars and local banks using virtual USD accounts and payment rails.
The app also offered a debit card issued via Rain's Puerto Rico license but onboarding provenance was unclear.

INSIGHT

Exchange Rate Arbitrage Fueled The Model

Contigo likely profited by arbitraging official versus informal exchange rates while injecting USD liquidity into Venezuela via USDC.
This creates powerful margins and explains rapid growth claims that looked suspicious to observers.

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Welcome back to Fintech Takes for a special bonus episode of Fintech Recap with Jason Mikula; Latin American sanctions evasion expert and author of a splendid ~5,500 word investigation on Kontigo that demands its own episode.

If you haven’t yet read Jason’s piece, “Kontigo: Y Combinator's Venezuelan Sanctions Evasion Startup” in Fintech Business News Weekly – the spine of this episode – you should (full link below).

This episode is a deep dive into Kontigo, a crypto‑fintech startup operating in Venezuela that marketed USDC off‑ramps and debit cards, raised money from Coinbase (among others!), and leveraged U.S. financial infrastructure (like JPMorgan Chase, Checkbook, Rain, Bridge, Lead Bank, and Stripe) … while operating in a heavily sanctioned environment.

The rise and fall of Kontigo raises urgent questions about accountability, compliance, and the risks embedded in stablecoin rails.

We get into:

The foreign exchange arbitrage that made the model profitable

Why stablecoins are “speed-running BaaS” (but worse)

How product market fit in stablecoins can be code for money laundering, sanctions evasion, or financial crime

And the surreal online behavior of the CEO (shirtless hype videos included)

Plus, in our Can’t Let It Go corner: agave spirit startups, Kontigo’s logo that obviously nods at the Petro (Venezuela's failed oil backed cryptocurrency), and our favorite quote of 2026 so far!

This episode is brought to you by Plaid.

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Read Jason’s “Kontigo: Y Combinator's Venezuelan Sanctions Evasion Startup” here:

https://fintechbusinessweekly.substack.com/p/kontigo-ycombinators-venezuela-sanctions