In the US the government can take over parts of your facility, and that could mean installing whatever equipment they want or even setting up camp and running ongoing operations on location. They'd have no problem updating the canary of a company who refused to keep doing it themselves.
I doubt most business owners would risk losing everything on top of prison time though. The best we can probably hope for is that they'd decide to simply close shop like these guys did: https://www.eff.org/deeplinks/2013/08/lavabit-encrypted-emai...
> The Fifth Amendment to the United States Constitution protects witnesses from being forced to incriminate themselves
Although, with Storj, the signatures didn't expire, so in the event that the government did setup operations, they could have just continued using one of the older signatures. (And only would have been unable to create new ones on request)
[1] https://web.archive.org/web/20221021050048/https://www.storj...
[2] https://en.wikipedia.org/wiki/Key_disclosure_law#United_Stat...
I hadn't seen the old one, just the empty one they have published now. It was a lot more specific than other comments suggested!
> Although, with Storj, the signatures didn't expire, so in the event that the government did setup operations, they could have just continued using one of the older signatures. (And only would have been unable to create new ones on request)
that's my guess. they could either compel the company to turn over the keys or they could get them themselves from wherever they are stored/used.
Of course such an important passphrase shouldn't only exist in the head of one person, and instead should be distributed between multiple members of the company (so perhaps the HSM could require N of M passphrases to unlock the master secret, using Shamir's Secret Sharing), which means creating a very complicated on-going criminal conspiracy, with new hires forced to further the crime in unique and creative ways, so that their individually-chosen passphrases can't be guessed.