I see this situation closely resembling Google's sudden action of changing their 'Don't Do Evil' motto.
True, but this case is even worse. Wasabi has been portrayed as the privacy enhancing tool of bitcoin years now. It wasn't
just a wallet, but a wallet whose reputation was built on privacy. Infringe this little principle and your project becomes pointless. On the other hand, I don't remember Google presenting themselves as pro-privacy advocates.
Nothing happened that we are aware of. That's what they said at least. If the government or some three-letter agency is threatening them with sanctions, they should step forward and say it.
You can't face sanctions easily and as said, if you say you do, you won't be trusted. I think the key to secure a privacy-oriented project, that relies on a central point, in this case the coordinator, is to do everything privately. If nobody knows who you are, they can't sanction you. See ChipMixer.