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Ptacek claims that "all" messages are stored in the clear. It's a rather big statement. I'm still waiting for moxie and tqbf to backup their claim somehow. That one finds in an API a string object called "message" does not mean that end to end encryption is not in place. pocogtfo
Not really surprising, is it? At least right now (don't know how it was in the past) their FAQ are clear that normal chats are only encrypted between client and server, and you have to activate secret chats for client-to-client crypto.