Another interesting thing about this case is just how far encryption technology has advanced (as in, advanced in what is available to ordinary citizens and not just military cyphers working on cryptography). There used to be a time that having a 'password' meant nothing, and for the vast majority of people that still applies. However, nowadays it is possible to get a proper encryption program that can make it very difficult for someone to access your files (they can still do so, but it would be quite the task for the vast majority of entities that would be seeking to do so). Hence this case.
I wonder if some FReeper knows how far the technology available to the public has gone. With more and more information being stored in the Cloud one can expect such technology to get better.
You can simply encrypt the same file multiple times using different passwords each time. To undo it you have to use the right passwords in the right order. With good encryption without back doors and then piling on the layers it would be essentially impossible to undo it without the key information.