Brazil Central Bank Cyber Attack Targets C&M Software

Financial institutions in Brazil experienced significant disruption as a cyber attack on C&M Software, a central bank service provider, led to $140 million diverted into cryptocurrencies on June 30, 2025.

This event underscores the growing risks of cyber vulnerabilities in financial systems and could lead to regulatory reviews of digital asset transactions in the region.

$140 Million Stolen in High-Profile Cyber Attack

C&M Software, founded by Orli Machado, suffered a cyberattack that resulted in a theft estimated between R$400 and R$800 million. Hackers exploited employee credentials, facilitating unauthorized access. Six financial institutions were affected, with BTC, ETH, and USDT facilitating the stolen funds’ conversion.

Conversions to crypto occurred quickly and involved Latin American OTC desks. These actions exposed security weaknesses in handling sensitive financial data. According to Orli Machado, “The company is a direct victim of this criminal action, which included the misuse of client credentials in an attempt to fraudulently access its systems and services. All critical systems remain ‘intact and operational’ and all security protocols were fully implemented.” The scale of the hack has implications for cybersecurity protocols, prompting immediate reassessment at affected institutions.

The Brazilian authorities and C&M Software are actively investigating the breach. Major public responses remain limited; however, ZachXBT, a cryptocurrency expert, highlighted the incident on social media: “One of the most outrageous cases to occur in 2025, undoubtedly, was the recent cyber attack against Brazil’s central bank service provider C&M Software, resulting in a loss of approximately $140 million (800 million reais)…”

Crypto Conversion Spurs Calls for Regulation

Did you know? Despite multiple breaches across financial systems, this incident marks one of the few involving direct central bank accounts, comparable to the Bangladesh Bank heist in 2016.

According to CoinMarketCap, Bitcoin (BTC) is valued at $107,744.73, with a market cap of over $2.14 trillion and a dominance of 64.69%. Bitcoin’s price volatility includes a 29.83% increase over the past 90 days, reflecting a shifting landscape in market dynamics.

Insights from Coincu suggest that this incident may lead to more stringent regulatory measures and heightened security in digital transaction infrastructural frameworks. The increasing sophistication of cyber threats necessitates comprehensive updates to digital security protocols among financial institutions worldwide.