Is this the end of popular encryption tool TrueCrypt?

It looks like the Truecrypt authors received a National Security Letter and therefore can't speak about what happened, the advice to migrate to Bitlocker (Microsoft system encryption which is closed source and almost certainly contains backdoors) is IMHO a hidden message that Truecrypt is compromised and has a backdoor too.

This is another nail in the coffin of software made in USA, as long as the US corporate government can secretly force US based software writers and manufacturers to put backdoors into their software, the US software industry is doomed, the mistrust of software originating from the US will continue to grow in the rest of the world.

There are a lot of people who already have started to question even open source based software originating from the US like RHEL for example, and the lack of comments by Redhat on this matter is not reassuring at all...

Has anyone done an in-depth security analysis on encfs lately?

Disturbing indeed!

From the announcement on the TC (that's TrueCrypt, not tuxchick) homepage:

"WARNING: Using TrueCrypt is

Not

Secure

As

it may contain unfixed security issues."

(Emphasis mine.)

Coincidence? Let's try applying Hanlon's Razor: "Don't assume malice where stupidity will suffice." Think... think... think... nope, sorry, can't do it here.