We do have SSL Offload FTP support in ACOS 2.7.2 P4. If you use telnet I believe the session will always come out as plaintext. Telnet by default does not encrypt any data sent over a connection. So I suggest to use curl to test which has SFTP support.
Comments
curl sftp://x.x.x.x:2121/ --user test:a10 -v --ftp-ssl -k
Let me know the outcome.
Genard