Magnet Forensics Sues Over Stolen iPhone Zero-Day
The smartphone hacking market typically operates in absolute secrecy. However, a recent lawsuit has exposed the inner workings of a major firm. The Canadian firm Magnet Forensics recently sued a former contractor and a Spanish company, Paradigm Shift Technology SL. Magnet Forensics accuses them of stealing critical information regarding an iPhone zero-day vulnerability. A zero-day vulnerability represents an undiscovered system flaw. Consequently, neither the public nor the manufacturer knows about it yet. Therefore, developers cannot patch the issue immediately.
Lawsuit Details and Allegations
Lawyers filed this lawsuit on July 7 in the US District Court for the Northern District of Georgia. It directly targets Mario Del Gaudio and Paradigm Shift Technology SL. According to Magnet Forensics, the stolen data involves a specific flaw inside Apple A12 and A13 processors. Apple previously installed these chips in older iPhone models. Both companies actively develop specialized hacking tools for government clients. Primarily, they serve police departments and various law enforcement agencies. Ultimately, these advanced programs allow authorities to extract data from confiscated devices.
The Breach of Confidentiality
Del Gaudio previously worked at Magnet Forensics as an iOS exploit engineer. Furthermore, he spent several months focusing exclusively on this particular vulnerability. The company claims he deliberately transferred his research to Paradigm Shift. By doing so, he severely violated his strict non-disclosure agreement. In June, Paradigm Shift published a detailed research paper on their official website. Unsurprisingly, this document highlighted the exact same flaw within the A12 and A13 chips.
Market Impact and Corporate Fallout
Magnet Forensics argues that this public disclosure immediately drew Apple’s attention to the security issue. Consequently, this exposure created a high risk of an imminent software patch. Ultimately, a patch drastically reduces the exploit’s overall value for existing clients. Previously, Magnet Forensics sent formal cease-and-desist letters to both Del Gaudio and Paradigm Shift. However, the controversial material detailing the vulnerability remains completely accessible online. You can read more about this corporate conflict in a recent Bloomberg report on the hacking firm lawsuit. Meanwhile, Apple has not yet responded to any official requests for comment.
The Booming Hacking Industry
Magnet Forensics currently collaborates with over six thousand public and private clients across one hundred countries. In 2023, the major investment firm Thoma Bravo acquired the cybersecurity company for $1.3 billion. Interestingly, similar disputes over stolen hacking intellectual property have occurred before. For instance, in 2025, a federal judge sentenced a former L3Harris Technologies contractor to over seven years in prison. He had illegally sold stolen hacking tools to a foreign broker.
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