When the original case surfaced I was wondering the same. If they had (real) evidence that your encrypted hard drives have CP, then I'd be okay putting you in jail (;
However, if that was the case then they wouldn't need to decrypt the drives, so this whole case smells quite a bit.
AFAIK there is a similar situation in the airport immigration; if you are an US citizen and don't want to provide a password for an encrypted device, they'll make you have a bad time, then throw the device and then let you in. Same for foreigners except with a flight back instead of letting them in. The bad time they give you basically depends on the immigration officer.
However, if that was the case then they wouldn't need to decrypt the drives, so this whole case smells quite a bit.
AFAIK there is a similar situation in the airport immigration; if you are an US citizen and don't want to provide a password for an encrypted device, they'll make you have a bad time, then throw the device and then let you in. Same for foreigners except with a flight back instead of letting them in. The bad time they give you basically depends on the immigration officer.