Encryption..has borked that balance..rendering ineffective the..force to back up a legal warrant
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Bullshit
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Every jurisdiction I know of makes failure to hand over passwords or encryption codes under a search warrant issued in that jurisdiction a crime.
So (maybe) do jail time if you hand over or definitely do jail time if you don't.
If you've got enough evidence to get a warrant you can definitely put someone in jail regardless of their crypto, and if you've got the computers still on you can probably find the keys in memory.
They want warrantless spy-on-demand snooping, regardless of the danger to everyone's privacy and money.