Railway Breach Targeted AI Provider API Keys for Distillation Attacks

Railway's cloud deployment platform suffered a targeted attack on October 20-21 aimed at stealing AI provider API keys to perform model distillation attacks. Railway identified a potential privilege escalation in its build infrastructure and halted build pipelines in response. An unauthorized third party may have accessed encrypted environment variables and, for some of them, obtained the decrypted contents, potentially including API keys, database credentials, and private registry credentials. Railway froze all deployments, proactively reset bucket keys and GitHub tokens on behalf of users, and worked with GitHub, GitLab, Anthropic, OpenAI, OpenRouter, SpaceXSI, Stripe, and others to revoke potentially compromised keys. Railway told all customers to rotate every secret stored in the platform. The attacker did not access Railway user accounts, though access to user source code has not been definitively ruled out. A final forensic investigation report is forthcoming.