A major financial breach occurred on June 30th due to a cyberattack by C&M, a software provider connected to the Brazilian Central Bank. Hackers stole $140 million in FIAT currency from a spare account linked to six financial institutions.
The developer claims that the attacker purchased access credentials for just $3,000. This insider access gave me a complete entry into the banking system. Zachxbt confirmed that this coincided with the timeline of the incident he was investigating.
Once inside, the attacker moved the stolen funds. Zachxbt said about $40 million has been converted from Fiat to Cryptocurrencies, including Bitcoin, Ethereum and USDT. There were no general alerts from authorities or banks, and no operations were seen at first without being noticed.
Zachxbt tracked crypto washing across the Brazilian exchange
Zachxbt began tracking Crypto’s moves shortly after the incident. He noticed an unusual volume spike in several Brazilian exchanges on the same day the violation occurred. With no official warnings released, he manually tracked outflows of hot wallets that matched the timing of the hack.
He estimated that about $5 million worth of crypto assets had been frozen so far. This was done through coordination with Tether, Binance, Bitso, Bybit and Che Cfinvestigators. He revealed that this amount only reflects funds frozen at the current stage of the investigation.
In some replies for X, Zachxbt emphasized that a tracking effort is ongoing. The actual total of ciphers moved or held in unknown wallets can be high. He continues to monitor the movements and exchanges of his wallet.
Circle refused to support Zachxbt’s tracking efforts
During the ongoing efforts, one social media user said that most platforms have helped remove circles. Zachxbt replied, “Circle Leadership doesn’t really care about the industry.” This direct statement followed growing questions about which companies took part in recovery actions.
Zachxbt’s criticism highlighted the lack of adjustment from certain parts of the crypto industry during emergency events such as the Brazilian Bank Hack. Some exchanges and service providers acted quickly, while others did not contribute to the freeze of stolen funds.
He also said tracking these movements would take a very long time. Since no official government support was provided at the beginning, most of the tracking work came from individuals and businesses in the blockchain sector.
To date, $5 million has been frozen, and $140 million is still under review
According to a report by Zachxbt, at this stage, around $5 million in ciphers have been frozen. He confirmed that these assets are spread across multiple blockchains and centralized platforms. The exchanges involved included Binance, Bitso and Bybit, but Tether and Chainalysis also supported the freeze.
He shared that he first flagged wallet activities based on chain analysis before confirming the involvement of funds related to C&M software violations. Many wallets remain active, but the investigation is still underway.
Related: Brazil’s Central Bank responds to a $140 million robbery that violates a major technology supplier
The cyberattack included insider sales of credentials, leading to one of the biggest known crypto-laundry events in Latin America this year. Brazilian authorities have not issued details of the case or been appointed as suspects. No official arrests related to the Crypto Washing Department have been confirmed yet.
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