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As impressive and scary as tjis sounds, it's a complete non-threat with proper use of FDE and IOMMU.
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One of my first ever hardware projects was making malware that installs itself inside the hard drive (not on the disk, but inside the hard drive firmware). Even if you reformatted the entire computer, the malware would just write itself back.
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In theory, but in practice disk encryption rarely provides authenticated encryption and doesn't protect against an attacker able to modify the encrypted data. It is possible to do it though. Code that handles bootstrapping also needs to be verified of course.
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fscrypt is supposed to be providing efficient AEAD cipher support at some point. I'm not sure if fscrypt is actually entirely upstream though since source.android.com/security/encry doesn't seem to be supported upstream rather than layering it on dm-crypt like source.android.com/security/encry.
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Filesystem-based encryption primarily exists to provide finer-grained encryption such as per-user/per-workspace encryption keys which become at rest when logged out. It's possible to use it as a form for FDE with only a boot password, but that would be missing the point of it.
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