Kinto pitched itself as the security first chain. KYC for every user. Audits and monitoring. Firewalls. Insurance for wallets. Their pitch wrote that crypto is 'dwarfed by the constant [...] smart contract hacks[...] Kinto is [...] designed to address all these problems.' But the exploit came from their own legacy token proxy on Arbitrum. Attacker could mint fake K tokens and dump for 577 ETH. The hack affected K token proxy on Arbitrum, which was outside those KYC and AML etc protections. Security first is a hard sell. Especially in crypto.(Ignas | DeFi)