

Regardless, they need to have it in their terms of service that they can host the file, encrypted or otherwise, on their servers and reserve the right to serve the files to other users.
But yes, that’s true that they can’t necessarily access the files they’re hosting/serving.
Isn’t a cracked (old, I think?) Kindle the only way to pirate KU/DRM titles? At least, that’s what I recall from the last time I looked into it. There’s a book I really wanted to format shift from KU since Google TTS was fucking up all the proper nouns, but I gave up. (It was an obscure book that isn’t available anywhere pirated.)