ZachXBT helps trace $40m in crypto tied to Brazil bank hack.
Hacks remain a major issue across both tradFi and DeFi, with attackers getting increasingly sophisticated. On Monday, July 14, blockchain investigator ZachXBT detailed how he assisted Brazilian law enforcement in tracing between $30 million and $40 million stolen from major banks.
The funds were part of a broader security breach that cost Brazilian banks at least $140 million. Hackers managed to convert a portion of the stolen assets into Bitcoin (BTC), Ethereum (ETH), and USDT. Subsequently, they laundered these funds through local exchanges and OTC trading platforms.
Tracking the funds was complex, according to ZachXBT. He noted that the process involved manually identifying volume spikes on Brazilian exchanges and analyzing outflows. Despite the challenges, he successfully identified multiple wallets and collaborated with Binance, Bitso, Bybit, and Tether to freeze approximately $5 million in stolen crypto.
Notably, ZachXBT called out Circle, alleging that the company did not assist in tracing the stolen funds. “Circle leadership does not actually care about the industry,” he stated.
How hackers stole $140m from Brazilian banks
On June 30, hackers targeted C&M Software, an IT provider for Brazil’s Central Bank and the PIX instant payment system. According to local media, the security breach was possible because one employee sold his login info for about $2,700.
The attackers ultimately siphoned off between $140 million and $180 million in reserves from six major financial institutions. ZachXBT reported that approximately $40 million of that total was converted into crypto assets. In response to the incident, Brazil’s Central Bank suspended part of C&M’s operations.
Authorities arrested the 48-year-old employee who sold his credentials to the attackers. Brazilian police are still pursuing other members of the group and believe that at least four additional individuals were involved in the scheme. As of July 4, law enforcement had frozen about $50 million in stolen assets.
