Mercor, the USD 10 billion AI-driven recruitment platform, has confirmed it was targeted in a significant security breach. The incident is tied to a widespread supply chain attack on LiteLLM, a popular open-source library used to manage AI model interactions. While Mercor has moved to contain the threat, the notorious extortion group Lapsus$ claims to have exfiltrated 4 terabytes of sensitive data, including proprietary source code and contractor information.

The breach originated in late March 2026, when a threat actor known as TeamPCP compromised the LiteLLM project by injecting malicious code into versions 1.82.7 and 1.82.8. This "backdoor" allowed attackers to harvest credentials from thousands of organizations that integrated the library. Mercor, which connects elite domain experts with AI giants like OpenAI and Anthropic, confirmed it was among the impacted entities. Who Are the World’s Youngest Self-Made Billionaires Behind AI Startup Mercor – Brendan Foody, Indian-American Adarsh Hiremath and Surya Midha?.

Following the initial compromise, Lapsus$ posted samples of the alleged stolen data on the dark web. The cache reportedly includes 939GB of platform source code, internal Slack communications, and a 211GB user database. Most concerning are 3TB of storage buckets containing video interviews and identity verification passports of contractors. Major DDoS Cyberattack Disrupts Uyghur Post, Incident Reported to US Authorities.

Mercor spokesperson Heidi Hagberg stated that the company’s security team "moved promptly to contain and remediate the incident." The startup has enlisted third-party forensics experts to conduct a full audit. While Mercor has not explicitly verified the 4TB theft claimed by Lapsus$, the company emphasized that protecting the privacy of its global network of specialists remains its foundational priority.

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(The above story first appeared on LatestLY on Apr 03, 2026 12:50 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).