Contents are encrypted but contacts are not. From what I understand, they can't see what you're saying but they can see who you're saying it too. Could potentially get banned for affiliation? But that would still be really shit! No freedom in that. E.g. What if you're an innocent journalist trying to contact a person deemed high risk...?
Btw, i'm not 100% sure about what i'm saying here so if anyone know's their policy better, please correct me
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Thanx for the insight!