He has US based servers - perhaps it was "give us your logs, or we take your servers" (speculation). I just figured I know the guy more than the people here - or at least, used to and from what I could tell he was a good guy who tried to to do the right thing. That's all I can say.
It's a bit like Hushmail. Compare their new advice to customers about how Hushmail will comply with law enforcement; to the point of creating new malicious Java software and pushing that out secretly to the 'target' / 'victim' to compromise their communication.
Hushmail states all this clearly, allowing new customers to make an informed choice.
What's annoying is the disconnect between saying "We help you avoid censorship" and "we comply with correctly formed law enforcement documents".