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A Reddit User Admitted To Pirating a Movie 12 Years Ago. Movie Studios Want To Unmask Him.
(reclaimthenet.org)
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That is exactly what happens. Encryption on the protocol doesn't do anything but hide what you're downloading from your ISP. It doesn't prevent someone from downloading the same torrent and matching your IP to it. That's why people recommend that you use VPNs if you're going to do this from your house.