Before anyone gets upset, please read the story. There is more to it than we can say in a short title. A security researcher by the name of Charlie Miller announced that he had discovered a security issue in iOS.
The exploit made it possible to sneak unapproved or malicious code into an app and get App Store approval without Apple catching the code. This could become a problem, as it would allow for people with evil intentions to exploit this hole and do things to unsuspecting users. That wasn’t necessarily Miller’s intent as far as we know. He just wanted to prove that there was a security hole that could be used by the wrong people.
It can actually download new, unapproved commands onto the device and steal user photos, contacts and do other things with iOS.
The problem here was that he submitted an app and got it approved. The app made use of this exploit. While it only seems that he was trying to prove a point and not harm anyone, this action still violated his developer agreement. Rather than inform Apple through some sort of contact page, he went this route. His app was removed and his developer license revoked.