Incident Overview
Hackers who stole more than $140 million from a Brazilian central bank contractor last week have laundered a significant portion—estimated at $30–40 million—through cryptocurrency over-the-counter (OTC) networks.
How Crypto Was Used
Blockchain analytics firm CertiK reported that the hackers converted stolen Brazilian reais into crypto assets via OTC brokers, who then dispersed funds through wallets across multiple chains.
Role of OTC Desks
OTC desks often allow high-volume trades to be made with minimal public trace. In this case, the attackers used both regulated and unregulated OTC platforms to avoid detection.
Statements from Investigators
CertiK warned: “OTC brokers play a critical role in laundering stolen funds due to their lack of transparency.” Brazilian authorities are now collaborating with global exchanges to freeze suspected wallets.
Consequences & Legal Steps
Authorities have arrested two OTC operators for suspected complicity. Legal experts anticipate more arrests and the possibility of new regulatory measures for OTC operations.
Future Risk Analysis
This case underlines the need for stronger Know Your Customer (KYC) practices and transaction monitoring at OTC desks worldwide.
