crypt32.dll is broken for Virtualbox since patch Tuesday 9-Dec-2014?

Solution 1:

Looks like update KB3004394 is bugged in Windows 7 (fine in Windows 8):

• https://www.virtualbox.org/ticket/13677
• https://forums.virtualbox.org/viewtopic.php?f=6&t=65056
• https://answers.microsoft.com/en-us/windows/forum/windows_7-windows_update/windows-update-kb3004394-issues/ace25277-7f65-4486-bc44-c1b106907a18

You can temporarily work around this by uninstalling that update.

In fact, it may not be sufficient to merely uninstall the update - you might have to use System Restore to go back to a point prior to the update (the update itself should have created a restore point, so you can use that).

Solution 2:

Install the fix from this KB to resolve the issue with Update KB3004394:

Install KB3024777 to fix an issue with KB3004394 on Windows 7 and Windows Server 2008 R2 http://support2.microsoft.com/kb/3024777/en-us