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On the other hand, there's a decent case made that establishing this kind of precedent would basically mean that if criminals are smart enough to use PGP, then that data can never be used against them.

So now smart criminals will move to Truecrypt hidden volumes and claim there isn't any hidden volume. So now what do you do? Jail someone who might be telling the truth, or let him go?

This doesn't solve anything. Encryption is way past it.



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