I use the security feature, but i believe even when not enabled passwords in the sites.dat are encrypted. No idea what to though as i've never had the urge to look.
The problem with all ftp clients is that the passwords can not be TOO secure and unbreakable... because the program itself needs to be able to decrypt/decode them to operate correctly.
But, and im not sure, i would assume the password used for the security feature has some kind of impact on the encyption of the dat files, making it unique for each user?
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