A major Brazilian bank hack highlights both crypto’s role in laundering stolen funds and ongoing challenges in industry-wide security cooperation, with $40M already entering crypto markets.
Blockchain investigator ZachXBT has uncovered a $140 million cyberattack targeting Brazil’s banking system, with $40 million funneled into cryptocurrency exchanges. The breach compromised reserve accounts at six banks through C&M, a Central Bank of Brazil services provider, with attackers converting stolen fiat into crypto on June 30.
ZachXBT manually traced the funds by analyzing volume spikes on Brazilian exchanges and tracking wallet outflows, revealing $5 million frozen across Tether, Binance, Bitso, Bybit and Chainalysis so far. He warned the total frozen amount may increase as investigations continue, noting the painstaking nature of such forensic work.
The investigator sharply criticized Circle’s lack of cooperation, stating its leadership “does not actually care about the industry.” Sources suggest attackers purchased system access credentials for just $3,000, enabling the massive breach. The case underscores both crypto’s vulnerability to financial crimes and persistent gaps in cross-platform security coordination.
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CryptoFeedHub Note: This article is a rewritten summary based on external reporting. Original source: CryptoSlate.