A recent cyberattack targeting reserve accounts via C&M Software has rocked Brazil’s financial sector, triggering swift and coordinated action from the global crypto industry.
The breach, which affected multiple financial institutions, is being treated as a highly organized and sophisticated intrusion.
In response, crypto exchange Bybit confirmed its active involvement in the investigation, working closely with renowned blockchain investigator ZachXBT. Their joint efforts led to the successful tracing and freezing of $3.35 million in stolen assets, with Tether executing the freeze directly on-chain. Additionally, Bybit independently blocked 35.5 ETH and over 500,000 BRL worth of Bitcoin linked to suspicious activity on its platform.
To further support ongoing investigations, Bybit has established direct lines of communication with Brazilian authorities, including CyberGaeco (MPSP) and the Central Bank of Brazil. The exchange has flagged several suspicious accounts and confirmed its readiness to freeze any future illicit inflows. These actions are aligned with its broader security strategy, including initiatives like the Lazarus Bounty Program, which rewards ethical hackers for exposing vulnerabilities and assisting with asset recovery.
The #GMX hacker chose to return the stolen $42M assets for a $5M white-hat bug bounty.
Currently, $10.49M $FRAX has been returned.
Another $32M assets had been swapped into 11,700 $ETH, which is now worth $35M—netting a ~$3M gain.
????Will the hacker return all 11,700… pic.twitter.com/XjBlAK81Mf
— Lookonchain (@lookonchain) July 11, 2025
This crackdown comes on the heels of another high-profile case: the GMX exploit. The attacker, who stole $42 million in crypto assets, accepted a $5 million white-hat bounty in exchange for returning the funds. So far, $10.49 million in FRAX has been recovered, while the remaining $32 million previously converted into 11,700 ETH has appreciated in value to $35 million. It remains unclear whether the attacker will return the full ETH amount or keep the $3 million in profits.
Amid these events, Tether—the issuer of the world’s largest stablecoin has announced a strategic investment in Crystal Intelligence, a blockchain analytics firm focused on risk monitoring, fraud detection, and compliance solutions. This move underscores Tether’s intent to strengthen its surveillance and investigative capabilities, particularly as crypto-related crimes continue to rise. According to the FBI, cryptocurrency scams in the U.S. caused losses of more than $9.3 billion in 2024—a staggering 66% increase from the previous year.
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