Academic researchers have unearthed a significant vulnerability within Apple’s M-series computing chips, potentially jeopardizing the security of private crypto keys.

On the same day, the US Department of Justice (DOJ) filed an antitrust case against the iPhone maker, alleging monopoly practices detrimental to consumers, developers, and competitors.

The vulnerability

The research team identified the chips’ data memory-dependent prefetcher (DMP) vulnerability.

Crypto analyst George explained that DMP is a hardware optimization that anticipates and preloads data into the CPU cache ahead of demand. However, it faces an issue where it occasionally confuses sensitive data, such as encryption keys, for memory addresses.

This phenomenon, known as “dereferencing pointers,” creates a vulnerability known as “side-channel attacks.”

The researchers demonstrated the capability to extract various encryption keys — including RSA, Diffie-Hellman, Kyber, and Dilithium — within 1 to 10 hours using a GoFetch attack. However, this exploit needs malicious and targeted crypto apps to operate on the same CPU cluster.

For the attack to succeed, the malicious app must provide inputs to the crypto app and prompt it to execute operations, thereby gradually leaking the key. This exploit is interactive rather than passive and must bypass macOS security measures to perform on the system.

Unfortunately, rectifying this flaw is not straightforward as it originates from the microarchitectural design of the chips, rendering it unpatchable. However, implementing defensive measures within third-party encryption software can mitigate the risk.

Legal trouble

US authorities, supported by 16 state attorney generals, filed legal actions against Apple for its “walled garden” business model, which helped establish an allegedly illegal monopoly in the smartphone market.

The lawsuit alleged that Apple implemented “shapeshifting rules and restrictions in its App Store guidelines and developer agreements that would allow Apple to extract higher fees, thwart innovation, offer a less secure or degraded user experience, and throttle competitive alternatives.”

They added that these suppressive rules were implemented across varying products, including text messaging, smartwatches, and digital wallets, among many others.

Crypto community members have highlighted the importance of this lawsuit to the industry, with Hish Bouabdallah, the founder of Tribes Protocol, saying:

“If Apple loses this battle, it could pave the way for crypto payments in the U.S., enabling seamless transactions using services like Coinbase Wallet with just a double tap and FaceID.”

The post Apple’s legal woes mount as vulnerability threatening crypto security comes to light appeared first on CryptoSlate.

As the Bitcoin halving approaches, industry executives anticipate significant challenges for smaller and less efficient miners, while well-established players are poised to weather the storm with operational efficiency and capital access.

Impact on profitability and network fees

In less than a month, Bitcoin miners will experience a reduction in block rewards, expected to substantially dent profitability and income. This looming reality has prompted major mining firms to prepare for the impending halving, which is set to test the resilience of various players in the market.

According to Adam Swick, Chief Growth Officer at Marathon Digital, the halving will serve as a litmus test, separating the efficient and well-funded mining entities from the rest. Larger firms with robust operational structures and ample access to capital are expected to navigate the reduced rewards more effectively. However, Swick warns that smaller operations operating on thin profit margins may struggle to survive the halving.

Michael Bennet, co-founder of OceanBit, underscores the importance of strategic planning and operational efficiency in the post-halving landscape. Miners burdened with debt and maturing securities are likely to opportunistically sell their holdings to alleviate financial pressure, particularly as competition intensifies and operational efficiency becomes paramount.

Historical precedent and adaptation

Greg Beard, CEO of Stronghold Digital Mining, points to historical precedent, noting that previous halving events have compelled mining companies to adapt to lower-margin environments. With profitability margins shrinking, miners are expected to adjust their strategies to remain viable in the evolving market.

In the face of diminishing rewards, miners must explore avenues to maintain profitability. This may involve strategic selling of Bitcoin holdings or optimizing operational processes to enhance efficiency and reduce costs.

Capital structure and debt management

The significance of sound capital structure and debt management cannot be overstated in the post-halving era. Miners burdened with excessive debt may be disadvantaged, particularly as competition heightens and profit margins shrink.

As the Bitcoin halving looms, mining executives emphasize the importance of adaptability and strategic planning. While the event may pose challenges for some miners, it also presents opportunities for those able to innovate and optimize their operations.

The Bitcoin halving is poised to test the resilience of miners, with efficiency and access to capital emerging as key determinants of success. As the industry braces for reduced profitability and increased competition, strategic planning, and operational efficiency will be essential for navigating the post-halving landscape. By leveraging historical insights and adapting to changing market conditions, miners can position themselves to thrive in the evolving Bitcoin ecosystem.