UK’s Push for iCloud Backdoor Puts Crypto Security and Privacy at Risk

TLDR

• UK government demands access to encrypted iCloud backups, risking crypto wallet security.

• The new push could expose users’ crypto wallet keys to brute-force attacks.

• Apple faces pressure but refuses to create backdoors, citing security risks.

• September 2025 marked a key moment as the SEC approved the first multi-asset cryptocurrency ETP in the US.

The UK government has once again pressured Apple to create a backdoor into its encrypted iCloud backup services. This move is sparking alarm among cybersecurity experts and crypto advocates. According to the Financial Times, the government has demanded Apple provide access to encrypted iCloud backups of UK-based users. While the request specifically applies to UK accounts, critics argue that it could set a dangerous precedent, potentially jeopardizing the privacy and security of users worldwide.

This renewed request from the UK government comes after previous demands earlier this year. Apple had been forced to suspend its Advanced Data Protection service in the UK due to regulatory concerns. The ongoing issue has now escalated to a new level, with the government seeking access to iCloud backups, which may expose sensitive data, including crypto wallet keys.

Risks to Crypto Wallets and Data Security

One of the main concerns surrounding the UK government’s request is the potential exposure of crypto wallet keys stored in iCloud backups. Many mobile wallet applications, including popular platforms like Coinbase Wallet, MetaMask, and Crypto.com, allow users to store encrypted private key backups in iCloud. While the backups are encrypted, the UK government’s demand could open the door to brute-force or dictionary attacks, which may allow hackers to decrypt sensitive files if they obtain access to the backup.

The Electronic Frontier Foundation (EFF) has raised alarm over the implications of creating such backdoors. The nonprofit group, which defends digital rights, has consistently argued that any backdoor created for government purposes makes users vulnerable to hacking, fraud, and identity theft. “This is still an unsettling overreach that makes UK users less safe and less free,” the EFF said, highlighting the dangers of such government control over encrypted communications.

Slava Demchuk, CEO of blockchain forensics firm AMLBot, also expressed concerns about the potential risks of government-backed backdoors. “The number of threats and attackers will increase. It’s simple logic,” Demchuk said, emphasizing that such measures could exacerbate the threat landscape for everyday users.

Apple’s Stance on iCloud Security and Encryption

Apple has strongly resisted the UK’s demands, stating that it will not build a backdoor into its products. In a statement, the company reiterated its commitment to user privacy and security. Apple had previously challenged similar demands under the Investigatory Powers Act, which would require the company to weaken its encryption protocols to grant authorities access.

In response to the UK’s demands, Apple has stated it is “gravely disappointed” that it cannot offer its full suite of encryption services to British users. The company has made it clear that any backdoor implementation would fundamentally undermine the security of its devices and jeopardize user trust globally.

Despite the UK’s ongoing pressure, Apple remains firm in its position to protect the privacy of its users. The tech giant continues to argue that encryption and user privacy should remain intact, rejecting the notion of government intervention that could expose sensitive data to hackers and unauthorized access.

Impact on Global Cybersecurity and Privacy Activism

This ongoing battle between governments and tech companies reflects a broader tension between security and privacy. Privacy advocates and cybersecurity experts warn that granting governments such access could undermine the safety of millions of users.

The case brings into focus the ongoing debate over digital rights, encryption, and the role of governments in regulating the digital space.

The crypto community, in particular, is concerned that such actions could weaken the security of crypto wallets, making it easier for hackers and malicious actors to access private assets. This issue is further compounded by the rise of digital currencies and decentralized finance, where privacy and security are paramount.

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