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CBC mode by itself is insecure.

OP: You should listen to tptacek. He's forgotten more about crypto than some people have ever learned. :)

"We decided to write a detailed report about the encryption and how we use it and will publish the report soon via Twitter."

That doesn't sound like releasing the source code...

How do you generate the initialization vector? CBC mode requires an unpredictable IV, which usually equals cryptographic random number.

> var hash = crc.Crypto.Hash.SHA256.hash(password.value),

> crypter = new Crypt.Mode.Licobo(new Crypt.Rijndael256(hash)),

From the code I cannot see any generation of IV, so I can only assume that the same IV is used every time. A predictable IV leads to many kinds of attacks. In particular, since the key is generated without salting, this means that a combination of the same key and IV will be used for multiple files, completely defeats the confidentiality.

And no integrity protection whatsoever? So vulnerable to bit flipping attacks?

via @cloudrail