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A federal agent said WhatsApp's encryption is a lie. Then the investigation was shut down
(www.techspot.com)
This is a most excellent place for technology news and articles.
I don't particularly know much about this specific topic but, it would be trivial for them to read what's seen in the app. The encrypted part is only during transfer of a message, your app is still decrypting it to plain texts, and meta can just read the message at that point.