Hackers stole $140 million from Brazil’s Central Bank in a sophisticated social engineering attack that exploited human vulnerabilities to bypass security systems. The perpetrators laundered portions of the stolen funds through cryptocurrencies including Bitcoin, Ethereum, and Tether.
The illicit proceeds were routed through Latin American over-the-counter (OTC) trading platforms and cryptocurrency exchanges, deliberately complicating tracking efforts. Blockchain analysis revealed the use of public ledgers and mixing services during laundering, highlighting persistent challenges for regulatory oversight in the crypto sector.
This incident underscores the critical vulnerability of financial institutions to social engineering tactics, which reportedly account for 98% of cyber attacks globally. Recent industry data indicates such methods have affected over 43,000 cryptocurrency users, causing approximately $39 million in losses.
The breach has intensified calls for strengthened internal security protocols at financial entities, including mandatory multi-factor authentication and comprehensive employee training programs. Experts emphasize the urgent need for enhanced compliance measures to detect and prevent cryptocurrency-enabled money laundering activities.