David Schuetz:

Earlier today, it was reported that a hacker/researcher called “xerub” had released the encryption key, and tools to use it, for the firmware that runs the Secure Enclave Processor (SEP) on iPhone 5S. Reporting was…breathless. Stories suggested that this move was “destroying key piece of iOS mobile security,” and that we should “be on the lookout for Touch ID hacks” and “password harvesting scams.”

Is it really that bad? No, not really (…)

What was released today was the key to decrypt that firmware, but not a key to decrypt the region of disk used by the SE to store data. So now we can actually reverse-engineer the SE system, and hopefully gain a much better understanding of how it works. But we can’t decrypt the data it processes.