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The home of Gizmodo editor Jason Chen, who leaked details of the next-generation iPhone, was raided by California’s Rapid Enforcement Allied Computer Team (REACT) late Friday.

Busting down the door, police confiscated four computers and two servers in a felony investigation, using a warrant issued by Judge of Superior Court of San Mateo.

Chen unveiled details of the yet-to-be announced iPhone 4G on Gizmodo, after the prototype was left in a bar by Apple engineer, Gray Powell.

Gaby Darbyshire, Chief Operating Officer of Gizmodo parent company, Gawker Media LLC, claims the search warrant is invalid under the shield protection laws, which protect journalists from having to turn over their sources and unpublished information they have collected as part of their reporting.

In an unusual move, the investigation is on hold while the San Mateo County District Attorney’s Office reevaluates whether the sheild laws apply, and they will not go through Chen’s property until a decision is reached.

The search warrant was executed by REACT, a multi-agency task force created to investigate high-tech crimes. Interestingly, Apple sits on the steering committee for the task force.