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They had a huge problem with their encryption for a while but I believe it’s now fixed. Additionally, it was ran by Kim Dotcom, the guy who hosted Megadownload, until the New Zealand government took over. So it’s had faulty encryption and is hosted by a 14 eyes government agency. This is why privacy communities recommend alternative options to Mega.
Do you happen to have a (credible) source on the NZ governement owning/controlling/hosting mega?