How certain are you he said "bad"? If he has instead asked "is encryption problematic?", the outcome can be interpreted much differently because there are problems with encryption. Especially in an ethics discussion, there are definitely pros and cons to encryption. (FWIW, the pros outweigh the cons by far, IMHO.)
I'm not trying to say your memory is wrong, I'm just asking how certain you are about what was asked exactly. Changing one synonym for another can make a big difference.