Earlier quoted context omitted.
What was strike 1? I can understand them not wanting the files to be public, but as tptacek said this is probably fluffed up quite a bit. As far as I'm concerned the only issue with how they handled it is the DMCA takedown request, and if the CTO acted as said but that is less of a factor. If the files were never removed from the persons dropbox and only public urls disabled I'm okay with that. However if the files w…
Strike 1 was when they got caught lying about whether their employees could decrypt your files or not.
It should have been obvious to anyone else remotely familiar with security that dropbox had/has access to your files from the simple fact that you could reset your password, as well as the web interface.