> the server can perform a MITM attack. > you cannot detect MITM between you and your peers.
>> NOT true. You can compare key visualization in the clients.
The key is not shown in hex, so a MITM is quite simple.
When they do enabled it for the first time, we can instantly MITM them using the attack against the "image verification" I mentioned lower down (https://news.ycombinator.com/item?id=6932053), and we can assume that the conversation is worth our while listening in on. The user will hopefully expose themselves in the belief that they are safe, and the game is over.
This is still vulnerable to server-side _key_ MITM. It's the hushmail/iMessage/etc silent escrow key attack.
http://telegram.org/img/key_image.jpg
Blue in the top and bottom, white line through the middle. So little information that anybody could simply brute force the keys until they found one that matched the description well enough.
I'd happily write a little attack for that, but it's clearly not "breaking" the system enough for the bounty.