A story published on gaming website Eurogamer.net states that on Monday, a brand new PSN-enabled custom firmware was released for hacked consoles. This was followed by the reveal of the decryption keys granting users PS3 Lv0 access, which is the lowest level the PS3 tries to protect.
According to the story on Eurogamer, the publication of the Lv0 decryption keys "blows the whole system wide open". The story's author, Richard Leadbetter says that their release means that "any system update released by Sony going forward can be decrypted with little or no effort whatsoever." He goes onto say that Sony's options in battling the leak are limited.
"Every PS3 out there needs to be able to decrypt any firmware download package in order for the console to be updated (a 2006 launch PS3 can still update directly to the latest software). The release of the LV0 key allows for that to be achieved on PC, with the CoreOS and XMB files then re-encrypted using the existing 3.55 keys in order to be run on hacked consoles," writes Leadbetter.
Apparently the Lv0 decryption keys had been kept under raps by the original group of hackers who had unearthed them. They've only been released now, as the groupe in question discovered a rival hacker organsiation had discovered them too, and were planning to charge users for them.
"You can be sure that if it wouldn't have been for this leak, this key would never have seen the light of day, only the fear of our work being used by others to make money out of it has forced us to release this now," a statement from the hacker group said.