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Yeah the extension is going to need to access your data to convert the images but what else it does who knows if anything at all.
Check the source code and decipher it if you want mate.
The risk is the same as anything you do on the net.
Anyone using Chrome would have Google using your data for their own agendas, anyone using IE could have Microsoft spying anyone using facebook has them collecting data.
Data data data rules the world now so whatever anyone does on the internet is at their own risk.
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