Ask HN: Can SpaceMonkey work?

spacemonkey is the new startup that launched at the #launch conference in SF yesterday. It's basically cloud storage meets P2P, perks? 1TB of storage costs $10 per month – in contrast, DropBox currently charges $19.99 for 100GB. Secure? AES-128 and RSA-4096 encryption for partial data on yours and others' hard drives they provide you. So basically it's a decentralized method to store data. I had the chance to speak with the founders (thanks for the T-shirt guys!) but I'm still wondering about the legal implications that inheriently comes with this type of p2p storage. They basically had a clean sweep yesterday and got steve, one of the judges to commit for investment. I'm still not convinced though.