Relevant package versions:

mount                              2.16-1ubuntu1
loop-aes-utils                     2.13.1-4

Here's a test case:

dd if=/dev/urandom of=/tmp/foo bs=1M count=5
sudo losetup -e aes256 /dev/loop1 /tmp/foo

The last command doesn't return back to prompt & hogs the CPU.

-- 
New kernel causes losetup to hog the system
https://bugs.launchpad.net/bugs/418477
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