Earlier quoted context omitted.
I think a more likely scenario might be that control of the project was seized, and the final release and statements were not from the developers, or they were issued by the developers under duress. It seems more like an agency wanted to shut it down because it worked too well.
I refuse to believe we live in that unfree of a society. I know that we have FISA courts and so forth, but that's still a tier below preventing someone from continuing to publish their computer code. All the 90's cases surrounding cryptography as armaments cemented the notion that it's protected under the first amendment.
I could never believe otherwise. Not after everything I've learned in my time on this rock.