A friend of mine was of the opinion that the government cannot put an end to Bitcoin because it unfortunately cannot be traced to a particular person or organization which could be sued for bringing about the currency or Blockchain.
If this is true does it mean that the identification of Satoshi as a person or organization will pose a treat to the existence of Bitcoin or otherwise
Have you asked your friend the same question? What is his answer?
I believe what he's trying to say is quite different from what you understood when you say "if satoshi is identified as an organization". Sure, the government can sue him for whatever crime he commits, but he is disconnected from the network as an individual. Unlike other companies that run or control their own node, or do their business in which the value from their native tokens comes, putting satoshi in jail serves no purpose other than trying to scare the market.
Of course, they can expand the definition of criminal to miners, and so on, but they can simply move from one country to another, or even stay anonymous if needed. Not to mention the legal ground can be challenged by anyone, especially if the government starts being inconsistent with the law itself. I believe doing such things is also a waste of time and money for the government. They'd profit more by simply regulating the market and earning taxes from trades.