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Dunno how well this was known, but this apparently made big news today.
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A new PlayStation Network-enabled custom firmware was released a few days ago, which is bad enough in its own right, but the real trouble comes from the follow-up release of the "LV0 decryption key," because that allows any changes Sony makes to the PSN security code to be decrypted "with little or no effort." Access to the LV0 key means that PS3 firmware packages can be decrypted on a PC, then re-encrypted with existing firmware 3.55 keys in order to run on hacked consoles.