“The arrest came months after the authorities told a federal judge they were unable to decrypt the drives and needed the defendant to disclose his passwords — pitting the constitutional right against compelled self-incrimination against the government’s need to access data. In June, the authorities urged the court to demand that Feldman fork over his passcodes, saying the suspect could ‘forget his passwords.’  The authorities did not say what type of encryption Feldman used. But the case illustrates that encryption isn’t foolproof and that the authorities are making headway cracking encryption.”

http://www.wired.com/threatlevel/2013/08/feds-crack-encrypted-drives/

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