Thankfully, backing up is entirely optional, and turned off by default. While they claim backups are encrypted with PBKDF2 [3], I still would never ever use something that sends my tokens to a remote server, as it'd defeat the purpose of 2FA in the first place.
Still, I can see the use for casual users that care enough to have 2FA, but not that much to worry about tokens being stolen and decrypted from Authy..
Past discussions on HN here [2], [3], [4].
[1] https://www.authy.com/thefuture [2] https://news.ycombinator.com/item?id=6133648 [3] https://news.ycombinator.com/item?id=4916983 [4] https://news.ycombinator.com/item?id=4330050