diff --git a/apps/files_encryption/hooks/hooks.php b/apps/files_encryption/hooks/hooks.php
index 0af0845d7c..a91bd9183f 100644
--- a/apps/files_encryption/hooks/hooks.php
+++ b/apps/files_encryption/hooks/hooks.php
@@ -97,9 +97,10 @@ class Hooks {
 				);
 			
 			}
-			
+
+			// DISABLED JUST FOR TESTING PURPOSE, ACTIVATE AGAIN!
 			// Register successful migration in DB
-			$util->setMigrationStatus( 1 );
+			//$util->setMigrationStatus( 1 );
 		
 		}
 
diff --git a/apps/files_encryption/lib/crypt.php b/apps/files_encryption/lib/crypt.php
index 5267ba81f5..74f8a1ffa3 100755
--- a/apps/files_encryption/lib/crypt.php
+++ b/apps/files_encryption/lib/crypt.php
@@ -479,15 +479,33 @@ class Crypt {
          * keys: data, key
          * @note this method is a wrapper for combining other crypt class methods
          */
-	public static function keyEncryptKeyfile( $plainContent, $publicKey ) {
-		
+	public static function keyEncryptKeyfile( $plainContent, $publicKey, $path ) {
+
+		$user = \OCP\User::getUser();
+		$view = new \OC_FilesystemView('/');
+		$util = new Util($view, $user);
+
 		// Encrypt plain data, generate keyfile & encrypted file
 		$cryptedData = self::symmetricEncryptFileContentKeyfile( $plainContent );
 		
 		// Encrypt keyfile
-		$cryptedKey = self::keyEncrypt( $cryptedData['key'], $publicKey );
-		
-		return array( 'data' => $cryptedData['encrypted'], 'key' => $cryptedKey );
+
+		$sharingEnabled = \OCP\Share::isEnabled();
+
+		// if file exists try to get sharing users
+		if($view->file_exists($path)) {
+			$uniqueUserIds = $util->getSharingUsersArray( $sharingEnabled, $path, $user );
+		} else {
+			$uniqueUserIds[] = $user;
+		}
+
+		// Fetch public keys for all users who will share the file
+		$publicKeys = Keymanager::getPublicKeys( $view, $uniqueUserIds );
+
+		// Encrypt plain keyfile to multiple sharefiles
+		$multiEncrypted = Crypt::multiKeyEncrypt( $cryptedData['key'], $publicKeys );
+
+		return array( 'data' => $cryptedData['encrypted'], 'filekey' => $multiEncrypted['data'], 'sharekeys' => $multiEncrypted['keys'] );
 		
 	}
 	
@@ -725,11 +743,11 @@ class Crypt {
 		
 	}
 	
-	public static function legacyKeyRecryptKeyfile( $legacyEncryptedContent, $legacyPassphrase, $publicKey, $newPassphrase ) {
+	public static function legacyKeyRecryptKeyfile( $legacyEncryptedContent, $legacyPassphrase, $publicKey, $newPassphrase, $path ) {
 	
 		$decrypted = self::legacyDecrypt( $legacyEncryptedContent, $legacyPassphrase );
 	
-		$recrypted = self::keyEncryptKeyfile( $decrypted, $publicKey );
+		$recrypted = self::keyEncryptKeyfile( $decrypted, $publicKey, $path );
 		
 		return $recrypted;
 	
diff --git a/apps/files_encryption/lib/util.php b/apps/files_encryption/lib/util.php
index fab807b014..5a6583465e 100644
--- a/apps/files_encryption/lib/util.php
+++ b/apps/files_encryption/lib/util.php
@@ -714,16 +714,19 @@ class Util {
 				
 					// Fetch data from file
 					$legacyData = $this->view->file_get_contents( $legacyFile['path'] );
-				
+
 					// Recrypt data, generate catfile
-					$recrypted = Crypt::legacyKeyRecryptKeyfile( $legacyData, $legacyPassphrase, $publicKey, $newPassphrase );
+					$recrypted = Crypt::legacyKeyRecryptKeyfile( $legacyData, $legacyPassphrase, $publicKey, $newPassphrase, $legacyFile['path'] );
 					
-					$relPath = $legacyFile['path'];
-					$rawPath = $this->userId . '/files/' .  $plainFile['path'];
+					$rawPath = $legacyFile['path'];
+					$relPath = $this->stripUserFilesPath($rawPath);
 					
 					// Save keyfile
-					Keymanager::setFileKey( $this->view, $relPath, $this->userId, $recrypted['key'] );
-					
+					Keymanager::setFileKey( $this->view, $relPath, $this->userId, $recrypted['filekey'] );
+
+					// Save sharekeys to user folders
+					Keymanager::setShareKeys( $this->view, $relPath, $recrypted['sharekeys'] );
+
 					// Overwrite the existing file with the encrypted one
 					$this->view->file_put_contents( $rawPath, $recrypted['data'] );