Brazilian Central Bank Service Provider Breached for $140M

ZachXBT, a prominent blockchain investigator, recently reported on a significant breach of the Brazilian central bank service provider C&M Software, resulting in losses of approximately $140 million on June 30, 2025.

This cyber attack highlights vulnerabilities in financial infrastructure and calls for improved security as hackers converted funds into cryptocurrency through OTC dealers in Latin America.

Cyber Breach Enables $140M Crypto Conversion

C&M Software’s infrastructure breach, on June 30, 2025, was facilitated by an employee who allegedly sold access credentials, enabling hackers to seize control of the company’s systems. According to ZachXBT, an estimated $30 million to $40 million of stolen fiat currency was converted into cryptocurrencies, such as BTC, ETH, and USDT, through OTC desks and crypto exchanges across Latin America. Instances like these underscore the risks posed by inadequate internal controls within financial service providers.

Immediate law enforcement actions include freezing assets and issuing disconnection orders to firms using the affected software. Approximately R$270 million ($49.8 million) has been frozen so far. While the Brazilian Central Bank confirmed the security of critical systems, there is limited public comment from either C&M Software or the central bank regarding further action or policy changes following the incident.

“One of the most outrageous cases that occurred in 2025 is undoubtedly the recent cyber attack on Brazilian central bank service provider C&M Software…I estimate that at least $30 million to $40 million was converted into cryptocurrency. I have been assisting in tracking the funds, freezing accounts, and identifying unmarked OTC dealers, and when it is possible to disclose, I will publish the addresses related to this theft.” — ZachXBT, Blockchain Investigator Cointelegraph

Insider Threat Fuels Financial System Vulnerabilities

Did you know? Previous central bank thefts frequently involve insider access and rapid conversions to cryptocurrencies, following patterns observed in past high-profile hacks globally.

Bitcoin (BTC) maintains a dominant presence in the market with a $2.15 trillion market capitalization, reflecting 64.7% dominance. Trading at $108,047.68, it witnessed minor fluctuations, marking a 0.15% rise over the last day per data from CoinMarketCap. The circulating supply stands at 19,888,012 against a 21 million cap.

Coincu analysts propose that strengthening insider threat detection and cross-border cooperation can fortify defenses against similar breaches. As regulatory landscapes evolve, enhanced oversight and international collaboration could mitigate such cybersecurity risks in financial systems.