That's certainly true of Snapchat in the past: http://www.businessinsider.com/snapchat-doesnt-delete-your-p...
It's unclear how they protect images today, but they have never once mentioned any use of encryption.
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I guess I quoted poorly - I meant "Is it true that Snapchat has likely protected hundreds of thousands of kids from severe bullying," not "Is it true that Snapchat does not use encyption in its implementation of disappearing messages".
I think it is possible that Snapchat has net caused more kids to get bullied as a result of ill-advised sexting, by being the company advising ill. I can see both arguments and I don't know which one is actually true.