Apple’s Crypto Scrutiny: Impact on Investing

Apple has recently faced scrutiny from the crypto community on two separate occasions. What does this mean for the world of cryptocurrencies and investing?

Apple Vulnerabilities and Antitrust Lawsuit

Firstly, Apple fell victim to a sophisticated side-channel attack known as “GoFetch,” exposing vulnerabilities in its M1, M2, and M3 processors. This exploit can potentially compromise private cryptographic keys stored in the CPU cache, posing a threat to sensitive data security.

At the same time, the United States Department of Justice (DOJ) filed an antitrust lawsuit against Apple, claiming that its App Store rules hinder competition and innovation, particularly in sectors like finance and crypto.

Implications of the GoFetch Attack

The GoFetch attack targets a vulnerability in modern Apple CPUs that puts users at risk of having their private cryptographic keys compromised. The exploit takes advantage of a feature called the data memory-dependent prefetcher (DMP) to reveal bits of the secret cryptographic key over time.

Unfortunately, fixing this hardware-based vulnerability is not a simple task, and users of Mac and iPad devices are potentially at risk until cryptographic application developers implement necessary mitigations.

Apple’s Response and Antitrust Woes

Apple has not provided concrete steps to address the GoFetch vulnerability but recommends implementing data-independent timing (DIT) for cryptographic functions. However, this solution may impact processor performance during such operations.

The DOJ’s antitrust lawsuit against Apple focuses on the company’s App Store rules and fees, including the infamous 30% “Apple tax” on in-app purchases, including crypto transactions. This fee structure has affected NFT marketplaces and developers’ ability to offer services on iOS devices.

Apple’s strict guidelines on payment systems and app distribution have also hindered the integration of crypto into iOS apps, leading to legal challenges and criticism from developers and industry experts.

While the resolution of the Apple vs. DOJ case may take several years, the crypto community and app makers have expressed support for regulatory action against Apple’s practices, emphasizing the need for fair competition and consumer choice.