That is extremely odd. The phone shouldn't try encrypting itself on it's own. It almost makes me think there was some form of virus or malware on the device.
It may not be removed on the phone, even though it says it is. Especially if it was something malicious on the device. First try "Safe Mode" and see if the phone will load. If it will, then you definitely have something on it that needs to be removed. If it won't then try the "Hard Reset" info following it.
To get into "Safe Mode" please do the following.
1. First turn off the phone.
2. Next press and hold "Power" until you see the manufacturers logo on the screen, then release the power button.
3. "Quickly" press "Volume Down" and hold it for few seconds until you see the message "Safe mode: ON" or something similar.
4. If you wanted disable it, simply repeat the steps above, and you should see "Safe Mode: OFF" rather than on.
Although you said you tried a reset, try this info for a "Hard Reset" and see if it works for you.
NOTE: Doing this will clear 'all' the data on your phone, so it is suggested you not choose this option unless you have to, or aren't worried about losing anything on the phone.
Be sure you back up any data you want to keep, to a computer or cloud account, before doing the reset.
To "Hard Reset" the phone...
1. Make sure that the phone is actually powered off.
2. Press the "Power" and the "Volume Up" buttons, together, until you see the start-up logo on the screen.
3. Once you can see the logo, release the buttons and allow the device to enter the "System Recovery Mode".
4. Next use "Volume Down" button to get to the "wipe data/factory reset" option When in recovery mode the "Volume Up" and "Volume Down" buttons are how to can navigate and highlight what option you need.
5. Once you have selected the "wipe data/factory reset", press the "Power" button to select that option.
6. On the following screen, repeatedly press the "Volume Down" button until the "Yes - delete all user data" option is what is selected.
7. Then press the "Power" button to hard reset the phone.
Should none of the above work, then you may want to contact the manufacturer.