A sophisticated cyberattack on C&M Software, which provides technology solutions for Brazil’s Central Bank, has resulted in a significant crypto laundering scheme, as hackers funneled a minimum of $40 million from stolen funds into Bitcoin, Ethereum, and stablecoins.
Key Highlights:
- Hackers are reported to have stolen close to $148 million from various Brazilian banks by compromising C&M Software’s security systems.
- According to blockchain investigator ZachXBT, at least $40 million was laundered using cryptocurrencies such as Bitcoin, Ethereum, and stablecoins.
- Authorities have frozen approximately $50 million in suspicious accounts linked to the breach, although a considerable portion of the illicit cryptocurrency remains unaccounted for.
ZachXBT uncovered the laundering activities by tracing substantial amounts of money through over-the-counter desks and exchanges throughout Latin America.
This incident marks one of the most significant financial breaches in Brazil’s history.
Hackers Target C&M, Essential to Brazil’s PIX Payment Network
The cyberattack specifically targeted C&M, a crucial connector for smaller banks and financial technology companies accessing the Central Bank’s systems, including PIX, Brazil’s popular instant payment platform.
Brazilian authorities revealed that hackers exploited credentials sold by João Nazareno Roque, a 48-year-old employee at C&M, who received around $2,770 for his corporate login information.
Local news agency g1 Globo reported that Roque not only sold access to his credentials but also aided in creating a system that facilitated the theft, earning an additional $1,800 in the process.
With this inside information, hackers executed a coordinated attack on June 30, extracting approximately 800 million reais, nearly $148 million, from reserve accounts belonging to six financial institutions.
$140M HACK in Brazil – Insider Sold Access for Just $2.7K?!
ZachXBT reports a $140M breach in Brazil, where an insider allegedly sold system access for only $2.7K. Around $30–40M was funneled into crypto via LatAm OTC desks.
One of the biggest insider leaks in recent memory?… pic.twitter.com/ehMqjuQGCi
— Crypto Patel (@CryptoPatel) July 4, 2025
The unauthorized transfers went unnoticed for nearly two and a half hours until BMP, one of the banks affected, reported suspicious transactions.
BMP’s CEO, Carlos Benitez, indicated that his bank lost approximately $73.8 million, although it succeeded in recovering around $29.5 million of that amount.
A Brazilian court has since placed a freeze on accounts suspected of harboring stolen assets, recovering roughly $50 million thus far.
However, the full extent of the laundering operation continues to be scrutinized, as significant amounts of stolen funds are still missing.
In the aftermath of this incident, the Central Bank has restricted certain access points of C&M Software, while authorities work to assess and contain the impact of the breach.
Roque was arrested on July 3, just two days following the hack, and remains in custody as investigations proceed.
Officials have clarified that no retail customers incurred direct losses, as the stolen funds were isolated to institutional reserve accounts held at the Central Bank.
Crypto Networks Become Pathways for Financial Crimes
This latest breach raises alarms about the cryptocurrency industry’s potential as a facilitator for traditional financial crimes.
Digital assets provide a level of liquidity and anonymity that conventional cash transactions cannot offer, allowing illicit funds to be transferred swiftly and efficiently.
Stablecoins, in particular, have attracted the attention of criminal enterprises.
The Financial Action Task Force has recently cautioned that stablecoins present heightened risks when utilized by illegal organizations, particularly without coordinated global regulatory oversight.
The heist in Brazil is reminiscent of a series of notable crypto-related thefts this year, including North Korea’s unprecedented $1.46 billion hack of ByBit and the dismantling of a $136 million laundering network by Chinese authorities that employed digital currencies for cross-border transactions.
Brazilian authorities are now focused on tracing the stolen funds across various blockchain networks, collaborating with international agencies to freeze assets and identify those accountable for what stands as one of the nation’s largest financial cyberattacks.
The post Brazil’s Central Bank Hack Sparks $40M Crypto Laundering in BTC, ETH appeared first on Finance Newso.
