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Comment Re:Paypal freezing is old news (Score 2) 443

What? PayPal freezing accounts has nothing to do with bank regulation and everything to do with the fact that they're not a bank. Think of PayPal like a shifty uncle who offers to let you store your money in his safe. Store too much and he might decide to keep it, and there's not a goddamn thing you can do about it.

Comment Re:Incoming (Score 3, Informative) 286

Indeed, according to Wikipedia:

English defamation law puts the burden of proving the truth of allegedly defamatory statements on the defendant, rather than the plaintiff, and has been considered an impediment to free speech in much of the developed world.

I'm sure the law is more complicated than that (and Wikipedia isn't the greatest source in the world) but it could get hairy for the guy.

Comment Obvious (Score 2) 136

So this is obvious to anyone with knowledge of encryption. I believe Mega's claim is that because the encryption is done on the client side, they don't know the key. This could be true, but you still have to take their word for it.

But even though it's obvious, it's something to consider. Mega claims that they could not decrypt your files. This is demonstrably false. So what's to stop the government from serving them with a National Security Letter that forces them to add code to the login process, logging all keys upon login, without any advance warning to their customers?

There's essentially no way to trust a third party on the internet now without an alternate, reliable channel of communication to exchange keys in the first place.

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