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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 know my way around cryptography, therefor I am skeptical. If push comes to shove, they can simply command the Whatsapp App to silently surrender the keys. Nobody would know, it is a closed source app and protocol, and they can hide what they are doing inside the (probably) TLS encrypted stream.