Ai [SC] Supply Chain

LiteLLM PyPI Supply Chain Attack - Mercor AI Breach (TeamPCP / Lapsus$)

2026-03-27 [vendor] LiteLLM (open-source AI/LLM API library); PyPI (Python package registry)
Primary Source ↗

Incident Details

On March 27, 2026, TeamPCP (a threat group also linked to the European Commission cloud breach) compromised PyPI publishing credentials for LiteLLM, a widely used open-source library for calling AI/LLM APIs. Malicious versions were published to PyPI, enabling downstream compromise of users. Mercor (a $10B AI data training startup) was a confirmed victim: attackers exfiltrated approximately 4 TB of data including 939 GB of platform source code, a 211 GB user database, and 3 TB of storage (video interviews and identity verification passport data for candidates). Lapsus$ subsequently claimed responsibility and auctioned data on dark web forums. Meta indefinitely paused work with Mercor. Five contractors filed lawsuits. TeamPCP is also attributed to the March 2026 European Commission AWS breach via the Trivy tool compromise.

Technical Details

Initial Attack Vector
TeamPCP (linked to Lapsus$) compromised the PyPI publishing credentials for the LiteLLM open-source AI API library, injecting malicious code into two versions on March 27, 2026; downstream victim Mercor was compromised via the backdoored package
Vendor / Product
LiteLLM (open-source AI/LLM API library); PyPI (Python package registry)
Software Package
LiteLLM
Supply Chain Attack
✅ Confirmed third-party / vendor compromise

Timeline

  1. 2026-03-27 Breach occurred
  2. 2026-03-31 Publicly disclosed
  3. 2026-04-01 Customers notified