Attackers have breached Coder's Cloudflare infrastructure, enabling them to insert unauthorized registry servers. These servers distributed malicious Terraform modules that contained code designed to steal user credentials. This incident poses a significant risk to developers and organizations that rely on Terraform for infrastructure management, as they could unknowingly use compromised modules, leading to potential data theft and security breaches. Users of Coder's services need to be vigilant, as the malicious code could affect their systems and expose sensitive information. The incident underscores the necessity for robust security measures when integrating third-party modules into development workflows.