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
No, Bitcoin development processes and ecosystem does not reliant upon hit creators or initiators. Supposing Satoshi identification know, no anyone can do anything with Bitcoin unless the community itself that gathers a consensus. In another hand, For Satoshi themselves, it might pose a threat or risk, whatever it is.
Bitcoin was built and designed to prevent a centralized entity from easily and effectively controlling its networks, not even Satoshi can do anything directly. Bitcoin communities are also strong enough not to be easily affected by any external factor that might harm Bitcoin.