Agree completely if the goal was to provide encrypted storage. However, as noted in other comments, this isn't actually the goal. The goal is to create a plausi

Agree completely if the goal was to provide encrypted storage. However, as noted in other comments, this isn't actually the goal. The goal is to create a plausible legal defense against legal threats from the RIAA and similar. If the encryption is done on the server side, Mega can legally be required to make a log of all copyrighted works uploaded to their servers and be liable for distribution. If the file is encrypted before it is uploaded, then Mega cannot physically store a log of copyrighted works. This is pretty major as take-down requests can then only be sent for a single upload. The most that could be done is for a court to publicly order Mega to cease and desist, at which point everyone can move on with no legal liability. This is a piracy platform, not a genuine secure storage. It's fairly clever. Sidenote regarding comment below: I live in Africa, I'm not sure who I trust less out of my bank, the police, or Mega. Probably not Mega!