Blockchain investigator ZachXBT revealed on X that cybercriminals broke into C & M Software, a service provider for Brazil’s central bank, and stole 800 million reais (about $140 million) from reserve accounts at six banks.
The attackers used a leaked employee login to convert stolen funds into crypto, and a private sector effort helped freeze roughly $5 million across multiple exchanges and blockchains.
Investigation and Asset Freezing
ZachXBT led the tracing effort, looking at volume spikes on Brazilian exchanges on June 30 and following hot wallet outflows. He said it was very time-intensive to match theft addresses to real-world events.
Thanks to the help from Tether, Binance Security Team, Bitso, Bybit Compliance Team and CFInvestigator, about $5 million in crypto was frozen.
The hack began when an employee sold login details for about $2 700. With those credentials, attackers accessed reserve accounts at six financial institutions and moved funds at will. The breach let them steal 800 million reais in a single operation.
According to on‑chain detective ZachXBT, the thieves converted between $30 million and $40 million of the stolen reais into Bitcoin, Ether and USDt.
Also Read: Greek Authorities Conduct First-Ever Crypto Seizure as Part of Probe into $1.5 Billion Bybit Hack
Rising Attacks
Big financial infrastructure always has a risk of running into this kind of attack. As the technology of these banks and services grows more advanced, they have multiplied the chances of being exposed.
In 2024, several Central banks and major banks were attacked and lost millions. One major case saw cybercriminals infiltrate a European bank’s trading system and siphon off funds over multiple days before detection.
After Affects
The security procedures of C&M Software are currently being audited by Brazil’s financial regulators, which are also examining access restrictions in all associated banks.
Institutions are being asked to keep an eye out for odd login trends and to strengthen personnel verification. Exchanges and fintech companies worldwide are also keeping a careful eye on this because they know that insider risks can happen anywhere.
Implications for Financial Security
This incident shows how a single leaked credential can lead to huge losses. It also highlights the power of cooperation between private firms in fighting crime. ZachXBT noted that collaboration is the best way to stop illicit cash flows and make the crypto industry safer.
The freeze of $5 million might look small compared to the full loss amount, but it sends a clear message that authorities are not sitting idle. Hackers cannot freely move stolen funds without someone catching them and landing in soup.
About 69,000 customers were impacted by that hack, which demonstrated how social engineering can compromise even well-known banking institutions.
This case will probably lead to calls from authorities for more precise guidelines on how service providers must safeguard customer information and login credentials. Tighter background and access checks on employees could potentially result from it.
Also Read: Arbitrum-Based GMX Suffers Major $42 Million Crypto Hack: What Happened?