Update: 05.11.07 Baseband iPhone Unlock will be Released 11/04/2009 via Blacksn0w, Geohot did not take the money.
Who doesn't like to witness a little drama? Especially if the drama is associated with the iPhone. Unlocking the iPhone is almost a sport in itself as every time Apple releases a new version, enterprising techies world over scramble to unlock the device and be hailed as heros.
Baseband 05.11.07 which is the new baseband version of the iPhone OS 3.1.2 hasn't been unlocked and hard working techies like the folks from the The Dev Team are on it. However what makes this story absolutely crazy is that Jody Sanders of iPhoneUnlockUK.com has offered a reward of $10,000 to the first hacker (or group) that unlocks the latest 05.11.07 baseband.
This Sanders character is not very well liked in the hacker circle and Dev Team even outed him when he commercialized their jailbreaks. However now that there is money in question, a number of developers are ignoring his past indiscretions and are working hard on a jailbreak! Only an iPhone can start an ethical debate between hackers!
And looks like Geohot, developer of the jailbreaking tool Blackra1n, took the $10k bait.