Reset leaves data accessible?

Review on amazon says

A very good drive however, there is a SERIOUS flaw with this that caused me to send it back. Inserting a paper clip into the reset but brings back some settings to normal but it also removes the password from the admin account. If your product is stolen all of your data would be accessible and if you have setup cloud sync (which is very limited and DOES NOT SUPPORT ONEDRIVE SYNC) then if the theif deleted your data and attached it to the internet it would also delete all of your files from the internet cloud for DropBox. A real shame - the product is great but this single issue completely destroys it as an option for security concious users.

Is this true ? Even when encryption is used ??

Hello,

Under storage you will see an option to encrypt the drives on which you can encrypt the drives an you will be asked for a password when you do a reset. This password will be different to the admin password.

Hope this helps.