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They're lying? Encryption at rest does not protect at all against the server snooping around. When you send or receive a message, the server has to see it in plaintext unless you have E2EE. So there is a way for them to access the plaintext of any message you receive, and it happens automatically billions of times per day. It's pretty easy.
That's wrong. There is no plaintext transfer. While a lot of stuff can potentially happen on server every second as you said, it doesn't happen according to them. I don't trust that fully either but that's their argument. You can look up encryption schemes in their faq.
I didn't say that there was any network plaintext transfer. I said the server needs to have access to the plaintext at some point.
That's not actually what they say, because it would be the cryptographic equivalent of claiming they invented a new color.
They talk about encryption at rest without mentioning the rest of their infrastructure to confuse the hell out of people that don't understand encryption. Given your comments it seems to work.