Levison's compliance took an unexpected form
The next day in Dallas, at about 1:30 p.m., Levison provided information that purported to be full compliance with the court's orders. Whether it was actual compliance remains uncertain. The government was not happy and engaged with attorney Binnall to achieve satisfactory compliance, without success. On August 5 the government filed a motion for sanctions against Levison, calling his apparent compliance "unworkable" and describing it as follows:
"Mr. Levison gave the FBI a printout of what he represented to be the encryption keys needed to operate the pen register. This printout, in what appears to be 4-point type, consists of 11 pages of largely illegible characters. See Attachment A. (The attachment was created by scanning the document provided by Mr. Levison; the original document was described by the Dal!as FBI agents as slightly clearer than
the scanned copy but nevertheless illegible.) Moreover, each of the five encryption keys contains 512 individual characters - or a total of 2560 characters. To make use of these keys, the FBI would have to manually input all 2560 characters, and one incorrect keystroke in this laborious process would render the FBI collection system incapable of collecting decrypted data."
When this compliance effort became public two months later, TechCrunch called it "an epic troll." At the time, the government was not amused and called for the court to sanction Levison $5,000 a day, beginning at noon August 5. The court promptly granted the motion, while reminding the parties that all aspects of the matter remained under seal. Known only to the participants and some court employees, the case was still unknown to the public.
Levison makes a tantalizing public announcement
That secrecy ended on August 8, when Ladar Levison shut down Lavabit, posting a short notice on the Lavabit.com website, together with a link to the Lavabit Legal Defense Fund. As Levison explained:
"I have been forced to make a difficult decision: to become complicit in crimes against the American people or walk away from nearly ten years of hard work by shutting down Lavabit. After significant soul searching, I have decided to suspend operations. I wish that I could legally share with you the events that led to my decision. I cannot. I feel you deserve to know what's going on -- the first amendment is supposed to guarantee me the freedom to speak out in situations like this. Unfortunately, Congress has passed laws that say otherwise. As things currently stand, I cannot share my experiences over the last six weeks, even though I have twice made the appropriate requests.
"What's going to happen now? We've already started preparing the paperwork needed to continue to fight for the Constitution in the Fourth Circuit Court of Appeals. A favorable decision would allow me resurrect Lavabit as an American company.
"This experience has taught me one very important lesson: without congressional action or a strong judicial precedent, I would _strongly_ recommend against anyone trusting their private data to a company with physical ties to the United States."
Also on August 8, Levison fully complied with the Fourth Circuit courts orders, turning over the encryption keys to a now defunct service. He had incurred 2 days of sanctions -- owing the government $10,000 -- which remains pending.
The next day, Silent Circle, a global encrypted communications service, stayed in business but preemptively wiped out its email service (about 5 per cent of its customers) in anticipation of a government request that the company wouldn't want to have to obey. "Meanwhile, Silent Circle is working on replacing its defunct e-mail service with a system that doesn't rely on traditional e-mail protocols and keeps no messages or metadata within the company's grasp. It is based on a protocol often used for instant messages and other applications. [CEO Mike] Janke says the goal is for this to not be e-mail, but "for all intents and purposes it looks, feels, and acts like e-mail,'" according to MIT Technology Review.
Lavabit's closing drew some news coverage over the next week, but any story was hampered by the gag order that severely limited what Levison and Binnall could safely say. As Levison told Forbes the day after shutting down Lavabit:
"This is about protecting all of our users, not just one in particular. It's not my place to decide whether an investigation is just, but the government has the legal authority to force you to do things you're uncomfortable with".The fact that I can't talk about this is as big a problem as what they asked me to do". The methods being used to conduct those investigations should not be secret."
The FBI and the Justice Dept. Have not commented publicly about the Lavabit case beyond their court filings.
Being secret, federal court appeal gets no news coverage
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