no, but it allows server to decrypt it. Government in case of the need can "ask" them to forward your chat and they will do it, but it was stated in their PR that server is unable to decrypt your messages.
exactly, the prize was at their own discretion(telegram) in the first place. And it was still for breaking their End-to-End encryption process.
To simply put it, you don't have to break a wall, just find a loose brick, once that is gone, the wall will have even more loose bricks, and eventually it will fall.
