Brazil’s financial system has been rocked by a major cybersecurity breach after hackers stole over $140 million from six institutions linked to the country’s central bank. The attack targeted C&M Software, a key technology provider that connects Brazil’s Central Bank with local financial institutions.

The breach reportedly occurred after a C&M employee sold his login credentials for just $2,700, granting hackers direct access to the company’s internal systems. Once inside, the attackers siphoned off 800 million Brazilian reais (about $140 million) from central bank reserve accounts. Blockchain analyst ZachXBT revealed that $30 million to $40 million of the stolen funds were quickly laundered through crypto exchanges and OTC trading desks using Bitcoin (BTC), Ethereum (ETH), and USD Tether (USDT).

Experts say the incident underscores the dangers of centralized software systems, where one compromised access point can trigger catastrophic losses. These risks are only escalating with the rise of AI-assisted hacking tools, which help cybercriminals breach systems faster and more efficiently.

Shielded Technologies CEO Eran Barak warned that centralized digital platforms—often containing millions of sensitive records or large sums of capital—are prime targets for hackers due to the massive potential return on investment. In contrast, decentralized technologies like zero-knowledge proofs (ZKPs) make such attacks far less appealing, as hackers would only gain access to a single wallet instead of an entire database.

Cyberattacks on centralized crypto platforms have already surged in late 2024, and experts believe the trend is only beginning. The Brazilian incident is a wake-up call for institutions relying on single-point-of-failure systems in an era where privacy, security, and decentralization are more critical than ever.