Hackers Steal $140M From Central Bank of Brazil, Swap $40M into Crypto

Highlights:

• Hackers stole $140M using insider help and routed funds through crypto exchanges.
• ZachXBT and prosecutors work to freeze wallets after $40M moved to crypto.
• Experts warn insider threats and AI tools worsen risks for centralized platforms.

On June 30, hackers stole around $140 million (R$800 million) from the reserve accounts of six Brazilian financial institutions. The attack targeted C&M Software, a key firm that links banks to Brazil’s Central Bank and the PIX payment system, according to blockchain investigator ZachXBT and reports from local news outlets.

According to reports, a C&M employee, João Nazareno Roque, gave his work login to the attackers in exchange for R$15,000 (about $2,770). He also created a second access method for them and was paid an extra R$10,000 (around $1,850). With full access to C&M’s systems, the hackers sent fake instructions that moved large sums from central bank reserve accounts. The stolen funds were transferred into commercial bank accounts linked to over-the-counter (OTC) crypto desks and smaller local exchanges.

$40M Moved to Crypto After Hack

ZachXBT estimated that $30 million to $40 million of the stolen money has already been converted into major cryptocurrencies like Bitcoin, Ethereum, and USDT. Meanwhile, on-chain analysts and Brazilian prosecutors are working together to freeze wallets and trace those behind the attack.

After the hack, Brazil’s central bank told all connected institutions to cut ties with C&M right away. Two days later, it allowed C&M to go back online, saying the main systems were not harmed. C&M’s commercial head said the breach happened through fake client logins, not a bug in the code. He also said they are fully helping the police with the investigation. BMP, one of the affected companies, said only its reserve funds were stolen, and customer money was not impacted.

ZachXBT Joins Brazil Probe as $55M in Stolen Crypto Frozen

ZachXBT is helping Brazilian police track the stolen crypto and block further transfers. He also said he would share the wallet addresses linked to the theft once it is safe. This will help freeze more stolen crypto. Police have already arrested a C&M worker who sold his login to the hackers. They have frozen about R$270 million, or around $55 million, from the stolen funds.

The Central Bank of Brazil said it has improved its monitoring systems to catch unusual PIX transactions more easily. Security experts say the big $140 million number is not the main issue. The real danger is social engineering, which remains the biggest risk in finance. Even with strong systems in place, stolen login details from insiders can still break through.

Centralized digital systems are always at risk of hacks, break-ins, ransom attacks, and bugs in the software. These risks are getting worse with the rise of artificial intelligence and AI-powered tools. In late 2024, hacks on centralized crypto exchanges increased. Chainalysis says hackers are targeting platforms with weak spots. In early 2025, CertiK said hacks and scams caused $2.5 billion in losses. Most attacks happened on Ethereum, with Bitcoin being the next biggest target.