This is all my personal point of view.  INRIA published an
official press release (no longer available on-line).
On July 14, Hal posted his SSL
challenge: a record of a "secure" Netscape session
encrypted with the RC4-128-EXPORT-40 algorithm.
I succeeded in cracking the challenge, but I was only the 
second one to find the key and
read the contents of his session.
If you're a journalist, be sure to read my
virtual press
conference.  If you have more questions, feel free to
send me some e-mail: Damien.Doligez@inria.fr.
This is a more-or-less chronological account of what happened:
- 
    The SSL protocol was designed to protect confidential data
    sent by Web browsers.  It has an option for weak encryption, to
    comply with the requirements of the US government for exportable
    software.
 - July 14: Hal posted his challenge in a short version and a detailed
    version.
 - August 15: I posted my original
    announcement.  I also have a revised
    version.
 - August 16: I learned that David Byers and Eric Young, working
    with Adam Back, had cracked the challenge about two hours before
    me.  Adam has a
    description of their
    achievement.
 - August 17: Netscape sent their official
    response.  I don't agree with their $10,000 figure, and they
    badly underestimate the cost of breaking RC4-128
    (the US-only version of their system).
    Still, I do agree with their conclusion.
 - The cypherpunks are putting together a
    "key cracking
    ring" to see how fast this can get: they will decrypt example
    sessions as fast as possible (I expect only about one day per
    session), by using a lot of machines all over the Internet.
 - August 19: Hal posted a
    second SSL
    challenge to cypherpunks for the "key cracking ring" to
    tackle.
 - The key cracking ring started working on this new challenge on
    August 24, at 18:00 GMT, and got the result in
    less
    than 32 hours.
 - September 4: Communications Week International
    wrote that I "enlisted a number of other engineers worldwide to
    crack the code again - in just 32 hours".  This is not
    true.  I did participate in the effort, but the credits
    for organizing it should go to Adam Back and
    Piete Brooks.
 - September 17: Ian
    Goldberg and David
    Wagner broke the pseudo-random number generator of Netscape
    Navigator 1.1.  They get the session key in at most a few hours on
    a single workstation.
    Their
    code is available by ftp.
    You can get more details on a
    web page
    written by Laurent Demailly.
 - September 20: Community ConneXion is awarding
    original T-shirts to people who
    Hack Netscape
    or Microsoft.
 - June 4, 1996: Le
    Monde, a french newspaper, published a
    paper with a somewhat garbled story about the Internet, that
    ends by implying "Damien Rodriguez" is a pirate.  I found
    15 factual errors in that article.
    
The man who reads nothing at all is better educated than the man who
reads nothing but newspapers.
    
                -- Thomas Jefferson
 
Related topics
- You can get the source of the program
    that I used to break the challenge.
 - A few people also have equivalent programs, for example Andrew
    Roos and Piete Brookes.
 - There is a lot of research in cryptology being done at INRIA
    (projects ALGO and CODES),
    École
    polytechnique, and École
    Normale Supérieure.
 - You may want to know more about the ITAR (International Traffic in
    Arms Regulations), which prevent Netscape from exporting their
    more secure system.  See the EFF ITAR export
    archive or John Gilmore's crypto
    export page.
 - The RSA-129
    crack used about 50 times more computing power than I did for the
    SSL challenge.
 - Cryptographic software is export-restricted by the US government
    even if it didn't originate from the US (i.e. if imported, it
    cannot be reexported).  Yet, you can find strong cryptography in
    the form of PGP (all over the world),
    and SSLeay (in
    Australia).
 - A UK company, MarketNet,
    already has a server with 128-bit security.
 - There are serious restrictions on the use of
    cryptography in
    France.
 - the
    cypherpunks
 - Tim May's Cyphernomicon
    is a list of frequently asked questions (with answers) about
    cryptography.
 - Netscape
 - the WWW consortium
 - my own web page
 - Some articles reporting this story are also available on the Web.
    Here is a game: spot the errors in these articles and report
    them to their authors.
    
 - It should be noted that both MD5 and RC4, two of the (very good)
    cryptographic components of SSL, were designed by Ron Rivest, of
    RSA Laboratories.
 - For a good introduction to the field of cryptology, read the
    sci.crypt
    FAQ.
 - Some
    information about cryptography (in German).
 - A good Web page on
    cryptography.
 
Cute quote:
"Just remember, in 10 years no one will care. In fact most people probably
 don't care right now."
                               -- Conrad E. Muller