Banco Master collapsed in November 2025 following a liquidity crisis and regulatory violations. The bank had attracted hundreds of thousands of depositors by offering returns as high as 140% of Brazil’s CDI benchmark. The institution utilized these funds to expand rapidly while maintaining illiquid and complex assets, which ultimately led to its failure.
The Brazilian deposit guarantee fund has paid out approximately BRL 40,2 billion to 722 000 clients affected by the collapse. Following the liquidation of the bank by the central bank, the situation has escalated into a significant political and legal scandal involving the country’s Supreme Court.
On September 15, the Supreme Court is scheduled to review whether Justice Alexandre de Moraes should be investigated regarding his interactions with Banco Master owner Daniel Vorcaro. Evidence suggests Vorcaro contacted Moraes prior to his arrest, and a law firm associated with the judge’s wife held a BRL 130 million contract with the bank.
Justice Moraes has denied any wrongdoing and accused Justice André Mendonça of abusing his authority by disclosing the investigative materials. The controversy has impacted the national election, with Senator Flávio Bolsonaro calling for the removal of Moraes and linking the scandal to the current administration.
