Hackers siphoned about R$800 million ($140 million) from six reserve accounts connected to Brazil’s central bank after breaching São Paulo-based software vendor C&M Software on June 30, according to blockchain investigator ZachXBT and reports from local news outlets.

Police said C&M employee João Nazareno Roque sold his corporate login for R$15,000 ($2,770) and later developed a secondary access tool for an additional R$10,000 ($1,850), giving attackers direct access to the vendor’s infrastructure.

Investigators traced unauthorized instructions that moved funds from the reserve accounts held at the Central Bank of Brazil for interbank settlement into commercial bank accounts tied to over-the-counter (OTC) desks and regional exchanges.

ZachXBT estimated that between $30 million and $40 million of the stolen funds had already been swapped for major digital assets, including Bitcoin, Ethereum, and USDT. 

On-chain analysis teams and Brazilian prosecutors are coordinating wallet freezes while attribution work continues.

Central bank and vendor response

The central bank ordered all institutions that routed through C&M to disconnect immediately after the breach and cleared the firm to restore service two days later, stating that critical systems remained intact.

C&M commercial director Kamal Zogheib told Reuters that the attack relied on fraudulent client credentials rather than a code flaw and confirmed cooperation with the Federal Police and São Paulo investigators.

BMP, a banking platform provider hit in the raid, told local media that only its reserve balance was affected, and customer deposits remained untouched.

Law enforcement officials have frozen R$270 million ($49.8 million) while tracking additional flows and searching for at least four accomplices cited in preliminary warrants.

Roque remained in custody in São Paulo as of July 3. Police allege that he rotated his mobile phones every two weeks to avoid being monitored.

Laundering route through Latin America

Transaction records reviewed by ZachXBT and independent researchers indicate that the attackers structured transfers across multiple exchanges in Brazil, Argentina, and Paraguay, then utilized OTC brokers to settle into crypto within three hours of the initial breach.

Sources who prefer to remain anonymous told CryptoSlate that the attackers found it challenging to buy crypto with the stolen money in Brazilian OTC desks, as most of the largest ones raised red flags due to the large amounts.

Brazil’s Federal Police declined to specify which platforms processed the swaps but said exchange operators have begun freezing balances tied to flagged addresses.

The central bank has not disclosed whether additional vendors will face new connection requirements but signaled that the instant payment rail PIX and reserve account interfaces may receive further controls.

The probe continues under federal supervision, with investigators prioritizing the recovery of funds and identifying the remaining organizers.

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked…

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June 16, 2025

The Brazilian lawmaker Eros Biondini has created a draft bill that proposes doing away with crypto tax, particularly in the case of citizens who hold Bitcoin (BTC) as a long-term store of value.

The MP has filed his bill in the Chamber of Deputies, the Portuguese-language media outlet Livecoins reported.

Brazilian Crypto Tax: Could Levies Be Scrapped?

The bill calls for the removal of the clauses in the tax code that explicitly mention the taxation of cryptoassets.

It also calls for the abolition of a 2023 law that spells out the means of collecting income tax from profits derived from cryptoassets.

The bill will first be assessed by a Chamber of Deputies committee. The committee will decide whether or not to pass the bill on to the lower house.

From there, it could then move on to the Senate and the office of the President. Both the Senate and the President would have the power to veto the bill.

Biondini also claims that new taxes on financial transactions, including foreign exchange and insurance transfers, are ill-timed.

He claimed that imposing a new tax burden on the population at “a time of economic fragility” would have negative consequences.

The lawmaker noted that the Brazilian tax “burden” reached 32.32% of the country’s Gross Domestic Product (GDP) in FY2024. This is the tax-to-GDP ratio’s highest rate in the last 15 years, per Treasury data.

Biondini criticized the government’s crypto policy. He complained that Brazil, “instead of leading” the world in crypto adoption, is now “going against the grain.”

He said existing and future crypto tax laws “penalize people who are looking for a legitimate, safe, and sovereign store of value.”

Formal Recognition for BTC Savers

The crypto-adovocating lawmaker has previously authored a bill that seeks to formally recognize Bitcoin as a strategic store of value in Brazil.

This proposal seeks to create tax exemption for BTC buyers and holders. It also seeks to spell out citizens’ rights to become self-custodians of their coins, without having to rely on crypto wallet operators.

Biondini took to social media last week in an attempt to unite the Brazilian crypto community behind his bill.

He suggested that if the topic were to go viral, the lower house would be pressured to reject efforts to boost crypto tax revenues in Brazil.

Biondini also called on fellow parliamentarians to back his bill. He explained that it had been designed to defend taxpayers, industry players, and Brazil’s “economic sovereignty.”

In November last year, Biondini unveiled a bill proposing the creation of a national Bitcoin reserve.

The plan called for the government to convert up to 5% of Brazil’s $372 billion international reserve fund to Bitcoin.

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According to a recent conference call, Méliuz Chairman Israel Salmen likened Bitcoin to a “nuclear reactor” after the company’s stock saw a sudden surge.

The fintech firm won shareholder approval to become Brazil’s first Bitcoin treasury company. Shareholders backed the shift by a large margin.

Salmen said the move marks a new path for Méliuz, one that ties the firm’s health directly to the performance of Bitcoin per share. It was a bold turn that has already caught the eye of investors at home and abroad.

Image: Shutterstock

Méliuz Builds Bitcoin Treasury

Based on reports, Méliuz paid about $28.4 million last week to acquire 274.52 BTC. Those coins join an existing stash of 45.78 BTC, bringing the total to 320 BTC.

Salmen noted that the firm plans to add more coins in an “accretive way,” using different financial tools. It’s not a hedge against market swings, he said.

Bitcoin now sits at the heart of the company’s balance sheet. Every new purchase should add real value to each share.

“Bitcoin is like a nuclear reactor that has been installed in our balance sheet.” – Meliuz (CASH3BZ, mkt cap $160M), Brazil’s first Bitcoin treasury company, Chairman Israel Salmen on the conference call pic.twitter.com/vpRw8z6Nbj

— matthew sigel, recovering CFA (@matthew_sigel) May 19, 2025

Stock Rally Fuels Interest

According to data shared by VanEck’s Matthew Sigel, Méliuz stock jumped from R$3.00 in mid‑February 2025 to R$10.70 by mid‑May.

Trading volume spiked in April, giving the rally fresh muscle. That kind of price move turns heads. Some traders say it’s a sign that linking the stock to Bitcoin could pay off.

Others warn that a pullback in Bitcoin would hit Méliuz hard. Still, the stock run has put the firm on the map.

Peers See Similar Gains

Based on market reports, Semler Scientific’s stock climbed 40% over a month, rising $12.53 to close at $42.36 on May 19.

The US‑listed firm said it posted a 22% BTC yield year‑to‑date as of May 12, adding 510 BTC and $52 million in dollar gains. And in a broader move, Strategy saw its share price rise 26% from $317 to $400 as of May 19.

Image: CPO Magazine

Strategy remains the largest corporate Bitcoin holder, controlling 576,230 BTC valued at roughly $59.57 billion. The company reported a gain of 73,120 BTC year‑to‑date, a 12% increase, and 140,538 BTC gains in 2024, equal to 24% of its holdings or about $13 billion in paper profit.

El Salvador’s Crypto Windfall

According to social media updates from President Nayib Bukele, El Salvador’s national Bitcoin fund now holds 6,181 BTC. The coins cost $287.1 million when bought, and their value today tops $640 million.

Featured image from Unsplash, chart from TradingView

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The Portuguese-language media outlet Livecoins reported that officers served multiple warrants in several cities in the state of Rio Grande do Sul.

Police think that the gang’s ringleaders are all prisoners, and that the entire racket was orchestrated from Brazilian jails.

Protection Racket: Suspects ‘Used Crypto to Launder Funds’

The raids come as part of a wider crackdown named Operation Timeo. The state’s Polícia Civil (PCRS) officers have said they seized tokens from crypto wallets and blocked suspects’ bank accounts.

The PCRS said that the suspects launched a fraud network to blackmail the owners of small automobile trading garages.

Officers added that the suspects also operated a “money laundering scheme.” This scheme reportedly used crypto to process the money they made from their fraud operations.

The PCRS added that one suspect has also been charged with carrying a firearm without a permit.

Suspects ‘Targeted Auto Traders in Several Cities’

A police spokesperson confirmed that officers had seized coins from multiple wallets in “several cities.”

The PCRS probe saw a total of 60 agents execute 11 search and seizure warrants against suspects in the cities of Porto Alegre, Novo Hamburgo, São Leopoldo, Portão, Cachoeirinha, and Imbé.

The São Leopoldo organized crime-fighting department orchestrated the operation. The PCRS said it also froze a total of 13.3 million reais ($2.3 million) in bank accounts belonging to 11 suspects.

The police did not disclose the methods they used to seize the crypto. Nor did they reveal the type of coins the suspects used.

Officers think that the gang targeted auto garage owners in Estância Velha, Novo Hamburgo, Ivoti, Sapiranga, and Portão.

The garages in question were owned by individuals who trade and repair second-hand vehicles.

The ringleaders allegedly sent individuals to order the business owners to hand over money “to avoid attacks on their businesses.”

Operation Timeo: Ongoing Investigation

Officers said they were investigating 10 suspects and one company. All of these parties, police said, “have links to inmates who had already been preventively arrested” during previous phases of Operation Timeo.

Investigations are ongoing, the PCRS said. A spokesperson said further investigations “may reveal a broader criminal network” involving extortion and money laundering.

Police think the group and other criminals are using crypto and shell companies to launder millions of USD worth of funds extorted from law-abiding citizens in protection racket schemes.

Earlier this month, the nation’s Superior Court granted judges the authority to seize crypto holdings from individuals in cases involving financial defaults.

The post Brazilian Police Seize $45,000 Worth of Crypto in ‘Protection Racket’ Raid appeared first on Cryptonews.

A court in Brazil has authorized the use of non-fungible tokens (NFTs) to notify unidentified defendants in a case involving missing Bitcoins (BTC) tied to an alleged pyramid scheme, BWA Brazil.

The decision stems from legal action filed by the court-appointed trustee of BWA Brazil’s bankrupt estate seeking to interrupt the statute of limitations on claims related to crypto assets allegedly acquired using creditor funds.

The estate requested that the court permit digital service of process by minting NFTs containing the relevant legal documents and transmitting them to wallet addresses involved in the initial transactions.

The ruling stated:

“Creditors who suffered multimillion-dollar losses cannot be further harmed by legislative delays in keeping up with technological innovation. Therefore, I authorize the court-appointed trustee to take all necessary actions to carry out notification of this interruptive protest [which interrupts lawsuit deadlines] via electronic communication using NFTs.”

Furthermore, the Public Prosecutor’s Office submitted a favorable opinion supporting the trustee’s petition. 

The measure targets holders of digital assets whose identities remain unknown but have wallet addresses that are traceable through the Bitcoin blockchain.

The estate claims that approximately 11,200 BTC were acquired using creditor funds. At current prices, 11,200 Bitcoin is worth over $900 million.

According to the filing, these transactions occurred before the bankruptcy and are now subject to potential recovery proceedings. 

A large scheme

BWA Brazil was founded in 2017 by Paulo Roberto Ramos Bilibio and presented itself as an investment company offering BTC exposure. It offered 5% fixed monthly returns on clients’ deposits, an impossible result based on a variable return asset such as Bitcoin.

However, the firm froze withdrawals in early 2020, leaving customers with losses estimated at R$300 million — roughly $52.2 million. Authorities estimated this is one of Brazil’s largest losses tied to an alleged crypto pyramid scheme.

In July 2020, a Brazilian court approved BWA’s filing for judicial recovery, claiming it would reimburse its customers. However, less than one year later, another court order changed the process from judicial recovery to bankruptcy, claiming the firm made no efforts to pay its clients.

Bilibio and his partner, Jessica da Silva Farias, allegedly used the money retained by BWA to buy Bitcoin. Both of them remain at large and have not been arrested yet.

Blockchain traceability enables new legal processes

The trustee highlighted that despite the anonymity of wallet addresses, Bitcoin’s technical architecture permits the tracking of individual coins. Once received into a wallet, BTC can be transferred repeatedly, but each transaction is permanently recorded on the blockchain. 

The filing acknowledged that some assets were moved through centralized exchanges, while others may have been transferred via peer-to-peer methods that bypass third-party intermediaries.

Authorities may be able to identify the ultimate beneficiaries in cases involving exchanges domiciled in Brazil, where entities are required to report user transactions to the Federal Revenue Service. 

However, peer-to-peer transfers using asymmetric encryption present significant challenges for attribution, making direct notification via the blockchain a necessary procedural innovation.

The use of NFTs to initiate legal notification marks an adaptation of procedural norms to accommodate blockchain-based financial activity’s unique characteristics as courts grapple with the jurisdictional and evidentiary complexities of decentralized asset flows.

XRP surged ahead of Bitcoin and Ethereum in the past 24 hours after securing its first spot exchange-traded fund (ETF) approval in Brazil.

Data from CryptoSlate shows that the token’s value jumped by 6% during this period, reaching $2.75, making it the best performer among the top 10 cryptocurrencies by market capitalization.

This upward trend adds to an intense week for XRP, which has gained over 10% amid increasing institutional interest.

Hashdex XRP ETF

Asset management firm Hashdex has reportedly secured regulatory approval to launch Brazil’s first spot XRP ETF.

This investment product will offer direct exposure to XRP’s price movements, giving investors a regulated avenue to trade the asset. It will also expand Hashdex’s suite of crypto ETFs, which includes Bitcoin and Ethereum offerings.

While an official launch date remains undisclosed, the fund has been in development since December 2024 and is now in its pre-operational phase.

Ripple CEO Brad Garlinghouse acknowledged the development by sharing a news report on his official X account.

Over the past years, Brazil has emerged as a key player in the global crypto market. A recent Chainalysis report ranks the country among the top 10 for crypto adoption.

Brazil is also a leader in crypto investment products, having launched the world’s first spot Solana ETF.

XRP ETFs in the US

In the US, the Securities and Exchange Commission (SEC) has taken initial steps to review some pending XRP ETF applications. This signals potential progress, though regulatory uncertainty surrounding the asset remains a hurdle.

Market analysts have speculated that the SEC may want to resolve its legal battle with Ripple before granting approvals.

Meanwhile, Fox Business journalist Eleanor Terrett has suggested that the delay in addressing the Ripple case stems from the SEC’s prioritization of other cases with more pressing deadlines.

Nonetheless, crypto bettors on the decentralized marketplace Polymarket believe there is an 80% chance of approval for the financial investment vehicle this year.

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