The free software iPhone unlock —the only one that counts— has been finally achieved and it has been independently tested. Everyone can now unlock their iPhones for free. The names of the rebel heroes from the iPhone Dev Team are (in alphabetical order): Daeken, Darkmen, guest184, gray, iZsh, pytey, roxfan, Sam, uns, Zappaz, Zf, plus Nightwatch for his iPhone toolchain. So no, the unlock was not achieved by GeoHot, who actually has no unlock.
Details are thin at the moment, but the free unlock appears to have been achieved by the usual suspects according to some of their claims on IRC channels. Apparently some hackers are exploiting the same buffer bug that the iPhone Sim Free people used to achieve their unlocks, but it is their own independent free unlock. Keep checking back for updates after the jump. And remember, no Death Star exploding until it gets fully confirmed and running in our iPhones.
So far, we know that GeoHot, of the hardware unlock fame, is claiming in IRC channels that he has unlocked the iPhone using the same method as iPhone Sim Free. This method, apparently, was suggested by Gray to GeoHot. Ironically, Gray is also the russian hacker who, on top of the tools and work already done by the rest of the Dev Team, gave GeoHot most of the necessary knowledge and analysis necessary to perform the hardware unlock he got famous for.
At this time, GeoHot hasn't made public any details yet. Meanwhile, hackers from the iPhone Dev Team keep testing the way that Gray suggested. Be aware that it's still not clear if GeoHot's claims are true or not. Unless his claims are independently tested by the community, and the unlock proven to be his work —which hasn't been proved either— the Death Star won't explode.
While all this is happening, another Dev Team group is currently testing another unlock software right now, which is also "similar to IPSF but works with patching a fls, not some strange bootloader code."
The unlock has been achieved! Apparently GeoHot's claims were not true, as it looks like Gray and others misguided him into thinking that a method was going to work while in fact it was bound to fail. Meanwhile, the true iPhone Dev Team hackers were able to put together the hack, which is going to be available in Deadbeef shortly, according to them.