Victim of Obama Spygate explains what happened

Forbes - Ladar Levison, 32, has spent ten years building encrypted email service Lavabit, attracting over 410,000 users. When NSA whistleblower Edward Snowden was revealed to be one of those users in July, Dallas-based Lavabit got a surge of new customers: $12,000 worth of paid subscribers, triple his usual monthly sign-up. On Thursday, though, Levison pulled the plug on his company, posting a cryptic message about a government investigation that would force him to “become complicit in crimes against the American people” were he to stay in business. Many people have speculated that the investigation concerned the government trying to get access to the email of Edward Snowden, who has been charged with espionage. There are legal restrictions which prevent Levison from being more specific about a protest of government methods that has forced him to shutter his company, an unprecedented move.

“This is about protecting all of our users, not just one in particular. It’s not my place to decide whether an investigation is just, but the government has the legal authority to force you to do things you’re uncomfortable with,” said Levison in a phone call on Friday. “The fact that I can’t talk about this is as big a problem as what they asked me to do.”
 
Levison’s lawyer, Jesse Binnall, who is based in Northern Virginia — the court district where Levison needed representation — added that it’s “ridiculous” that Levison has to so carefully parse what he says about the government inquiry. “In America, we’re not supposed to have to worry about watching our words like this when we’re talking to the press,” Binnall said.

“As a Dallas company, we weren’t really equipped to respond to this inquiry. The government knew that,” said Levison, who drew parallels with the prosecutorial bullying of Aaron Swartz. “The same kinds of things have happened to me. The government tried to bully me, and [my lawyer] has been instrumental in protecting me, but it’s amazing the lengths they’ve gone to to accomplish their goals.”

Hours after Lavabit announced its shutdown, encryption app Silent Circle said it was preemptively shutting down its email service. Silent Circle founder Phil Zimmermann, who created email encryption software PGP, said the company deleted all of its customers’ existing email when it did that. “We’ll try to do something nice for them to numb the pain,” he said. It’s not obstruction of justice if you do it before justice comes calling.

Levison plans to appeal the government’s request from him in the Fourth Circuit and has asked supporters to donate to his legal fund. As of Thursday night, hours after making the request, he had received $40,000. (Update, 8/10/13: As of Saturday morning, Lavabit’s legal defense fund is closing in on $90,000.)