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Microsoft’s open source tools were hacked to steal passwords of AI developers

TechCrunch · Jun 8, 2026, 8:03 PM · Also reported by 2 other sources

Key takeaways

  • Microsoft has cut off access to dozens of its open-source projects hosted on Git Hub as it investigates how hackers apparently breached the projects and injected password-stealing malware into the code.
  • Many of the affected projects relate to Microsoft s cloud service Azure and other tools used by developers to code with AI development apps, such as Claude Code, Gemini s command line interface, and VS Code.
  • It s not immediately known how many people have downloaded the affected tools.

Microsoft has cut off access to dozens of its open-source projects hosted on Git Hub as it investigates how hackers apparently breached the projects and injected password-stealing malware into the code.

Many of the affected projects relate to Microsoft s cloud service Azure and other tools used by developers to code with AI development apps, such as Claude Code, Gemini s command line interface, and VS Code.

According to security firm Cloudsmith and community-driven malware analysis site Open SourceMalware, who were some of the first to flag the hack, the malware allowed the hackers to steal the user s passwords and other sensitive credentials when they opened the compromised tools in their AI coding apps.

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