Brian Krebs has the details–

Charles Edge, a researcher from Georgia, had been slated to discuss his research on a weakness that could be used to defeat FileVault encryption on the Mac. But sometime last week, Black Hat organizers pulled his name and presentation listing from its schedule of talks.

Contacted via cell phone, Edge said he signed confidentiality agreements with Apple, which prevents him from speaking on the topic and from discussing the matter further.

Almost every year, much of the drama leading up to and during Black Hat seems to revolve around talks that are canceled or censored at the last minute for various legal reasons.

Read the full article here.

We show that disk encryption, the standard approach to protecting sensitive data on laptops, can be defeated by relatively simple methods. We demonstrate our methods by using them to defeat three popular disk encryption products: BitLocker, which comes with Windows Vista; FileVault, which comes with MacOS X; and dm-crypt, which is used with Linux.

[...]

The root of the problem lies in an unexpected property of today’s DRAM memories. DRAMs are the main memory chips used to store data while the system is running. Virtually everybody, including experts, will tell you that DRAM contents are lost when you turn off the power. But this isn’t so. Our research shows that data in DRAM actually fades out gradually over a period of seconds to minutes, enabling an attacker to read the full contents of memory by cutting power and then rebooting into a malicious operating system.

Interestingly, if you cool the DRAM chips, for example by spraying inverted cans of “canned air” dusting spray on them, the chips will retain their contents for much longer. At these temperatures (around -50 °C) you can remove the chips from the computer and let them sit on the table for ten minutes or more, without appreciable loss of data. Cool the chips in liquid nitrogen (-196 °C) and they hold their state for hours at least, without any power. Just put the chips back into a machine and you can read out their contents.

This is deadly for disk encryption products because they rely on keeping master decryption keys in DRAM. This was thought to be safe because the operating system would keep any malicious programs from accessing the keys in memory, and there was no way to get rid of the operating system without cutting power to the machine, which “everybody knew” would cause the keys to be erased.

Our results show that an attacker can cut power to the computer, then power it back up and boot a malicious operating system (from, say, a thumb drive) that copies the contents of memory. Having done that, the attacker can search through the captured memory contents, find any crypto keys that might be there, and use them to start decrypting hard disk contents. We show very effective methods for finding and extracting keys from memory, even if the contents of memory have faded somewhat (i.e., even if some bits of memory were flipped during the power-off interval). If the attacker is worried that memory will fade too quickly, he can chill the DRAM chips before cutting power.

There seems to be no easy fix for these problems. Fundamentally, disk encryption programs now have nowhere safe to store their keys. Today’s Trusted Computing hardware does not seem to help; for example, we can defeat BitLocker despite its use of a Trusted Platform Module.

The paper is here; more info is here. Articles here.

There is a general security problem illustrated here: it is very difficult to secure data when the attacker has physical control of the machine the data is stored on. I talk about the general problem here, and it's a hard problem.