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Two Alleged ‘TeamPCP’ Hackers Arrested in Australia

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Why This Matters

The arrest of alleged 'TeamPCP' hackers marks a significant breakthrough in combating cybercrime targeting open-source software supply chains. Their sophisticated tactics, including embedding malware in widely-used developer tools, highlight the growing vulnerabilities in software development ecosystems that impact global businesses and consumers. This development underscores the importance of enhanced cybersecurity measures and vigilance in open-source communities to prevent future attacks.

Key Takeaways

Authorities in Australia have arrested two men believed to be members of TeamPCP, a prolific cybercrime and data extortion group blamed for perpetrating the longest running spree of software supply chain attacks ever.

In a statement released today, the Australian Federal Police (AFP) said two men from Western Australia, aged 21 and 23, were arrested in connection with a “sophisticated cybercrime syndicate that allegedly created malicious open-source software to rob thousands of global businesses.”

The AFP did not name the defendants, but KrebsOnSecurity learned the 21-year-old suspect’s real identity in June, and has been communicating with him ever since. This story includes interviews with TeamPCP’s self-described spokesperson, and examines clues left behind by the TeamPCP leader that likely led to his undoing.

TeamPCP vaulted onto the cybercrime scene in late 2025, embedding malicious code in hundreds of open source software tools and extorting victims for profit. Members of the group made headlines by compromising corporate cloud environments using a self-propagating worm dubbed Shai-Hulud, which added malicious code to open source programs maintained by developers whose credentials at public code repositories like GitHub or NPM were phished or stolen.

Writing for Wired, journalist Andy Greenberg described TeamPCP’s core tactic as a kind of cyclical exploitation of software developers.

“The hackers gain access to a network where an open source tool commonly used by coders is being developed,” Greenberg wrote in May. “The hackers plant malware in the tool that ends up on other software developers’ machines, including some who are writing other tools intended to be used by coders. The malware allows TeamPCP’s hackers to steal credentials that let them publish malicious versions of those software development tools, too. The cycle repeats, and TeamPCP’s collection of breached networks grows.”

TeamPCP also has practiced something akin to cyclical recruitment. In May, the source code for the third iteration of Shai-Hulud was published online, and TeamPCP soon after launched a contest offering $1,000 in virtual currency to whichever participant could conduct the largest supply chain operation using the worm’s code. According to the contest rules, participants were scored based on the number of weekly and monthly downloads of packages they compromised — directly incentivizing them to target the most popular code libraries.

“TeamPCP has stated the competition is a recruiting opportunity and they intend to purchase all meaningful access harvested from participants’ campaigns,” the security firm Dataminr wrote. “The $1,000 XMR (Monero) prize is a recruitment floor and has been dismissed by the actor as ‘just like participation trophy,’ adding ‘if you find something good you will be paid way more,’ confirming the contest’s true function as talent identification and malicious access acquisition at scale.”

In March, TeamPCP executed a supply chain attack targeting AI infrastructure by compromising the code for LiteLLM, an open source AI gateway that connects users to more than 100 different large language models. A recent analysis by the security firm CloudSEK found TeamPCPs attack on LiteLLM harvested cloud service keys and other secrets from more than 2,500 organizations, including many of the world’s top technology companies.

In May, TeamPCP claimed credit for compromising at least 3,800 code repositories at the Microsoft-owned GitHub, after a GitHub developer installed a code extension that was compromised by TeamPCP’s malware.

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