A state-supported institution in China has purportedly found a way to identify users who share content through Apple Inc.'s (AAPL  ) AirDrop feature.

What Happened: A Beijing-based research institute claims to have cracked the encrypted device log of an iPhone to reveal the phone numbers and email addresses associated with AirDrop users, as reported by Bloomberg.

The city's judicial bureau indicated that they have identified several suspects using this technique but refrained from revealing if any arrests have been made.

The bureau underscored that this method enhances the effectiveness and precision in resolving cases and curtails the spread of inappropriate remarks and potentially harmful influences.

Apple's AirDrop feature only requires a nearby Bluetooth connection and was notably used by protesters during the 2019 pro-democracy demonstrations in Hong Kong.

However, AirDrop now works over the internet as well, thanks to an iOS 17 update that was rolled out earlier in September 2023.

If you have initiated an AirDrop transfer with another user but are moving away, the transfer will continue over the internet after the devices disconnect over the local network.

At the time of writing this story, Benzinga has written to Apple for more clarity, and we await the company's response.

Why It Matters: Apple's AirDrop feature has been a subject of restriction in China since November 2022 amid escalating anti-government protests.

Apple had limited the time frame when iPhone users could use the "Everyone" setting to receive content from anyone to a mere 10 minutes, signaling a potential global trend. This new development in China further underscores these concerns.