Is there a problem with encrypting/decrypting binary files, or am I doing it wrong?

crypt.js

//invoke with a filename to encrypt and decrypt a specific file.

var fs = require('fs'),
	crypto = require('crypto');

var ALG = 'aes256';
var KEY = 'test';
var ENCODING = 'hex';
var FILE = process.argv[2] || 'file.txt';

console.log(FILE);

var stream = fs.createReadStream(FILE);
var cipher = crypto.createCipher(ALG, KEY);
var encryptedFile = fs.createWriteStream(FILE + '.enc');

stream.on('data', function(data) {
	var encrypted = cipher.update(data, null, ENCODING);
	encryptedFile.write(encrypted);
});

stream.on('end', function() {
	var encrypted = cipher.final(ENCODING);
	encryptedFile.write(encrypted);
	encryptedFile.end();
	console.log('done encrypting');
});

stream.on('close', function() {
	decrypt();
});

function decrypt() {
	var stream2 = fs.createReadStream(FILE + '.enc');
	var decipher = crypto.createDecipher(ALG, KEY);
	var plainFile = fs.createWriteStream(FILE + '.uenc');
	
	stream2.on('error', function(err) {
		console.log('error: ' + err);
	});
	
	stream2.on('data', function(data) {
		var plain = decipher.update(data, ENCODING);
		plainFile.write(plain);
	});

	stream2.on('end', function() {
		var plain = decipher.final();
		plainFile.write(plain);
		plainFile.end();
		console.log('done decrypting');
	});
}