Microsoft recently revoked access to dozens of open-source projects hosted on GitHub after discovering that hackers appeared to have compromised these repositories and implanted malware designed to steal passwords within their code. The affected projects were largely related to Microsoft’s cloud service Azure and associated developer tools, including components invoked by developers using AI programming applications such as Claude Code, Gemini CLI, and VS Code. According to initial disclosures by security firm Cloudsmith and community-driven malicious software analysis platform OpenSourceMalware, this malware was capable of stealing users’ passwords and other sensitive credentials when they opened infected components in AI coding tools. It remains unclear how many people downloaded the affected tools. A Microsoft spokesperson, Ben Hope, confirmed the incident to TechCrunch, stating that the company had temporarily removed some repositories while investigating potential malicious content. Some of these repositories have since been restored after review, while others may remain offline. Microsoft also notified several customers who might have previously downloaded content from the impacted repositories. Currently, at least 70 Microsoft-related projects on GitHub have been marked as "disabled," with an access page displaying the message: “Access to this repository has been disabled by GitHub staff due to violation of GitHub's Terms of Service.”