Earlier quoted context omitted.
Does that seem like a reasonable license to you? Admittedly, it doesn't matter, because these authors don't have the resources to hire lawyers from abroad, but all this stuff about "illegal activity"? This is a git client. It gives us no functionality that does not already exist in git. What am I going to do, rob a convenience store with it? Why would the author care if I did? Why are the terms more onerous than thos…
Even in the US, it's common to have clauses about specific illegal activity, such as breaking embargoes or similar. For example, you might be banned from using the software in, or cooperating with someone located in, Iran. You could do both of those with a git client. This is more generally phrased than the very lawyer-written EULAs you generally find, but it's not unreasonable or unprecedented.
Embargoes and sanctions have no ethical force behind them anyway. They are merely a way to harm poor people while ginning up more pretexts for more wars. Anyone who can oppose such monstrosities using git should do so.