Guys, there is no need to argue about the details. We got the real answer here (emphasis mine).
Nobody's supporting mass surveillance here. Quite the opposite in fact. Delivering a Bitcoin privacy solution that's lightyears ahead of the others, is the best testimony to that. zkSNACKs operates with utmost transparency, pushing for a future where privacy is respected and mass surveillance becomes increasingly difficult. The folks at zkSNACKs are dedicated to this cause and tirelessly work on innovative solutions. One of these solutions: Wasabi Wallet, became so successful that the people behind it do not have the luxury to live in lalaland anymore. Working on privacy is risky and it does no good for anybody to go head first into the wall.
I always suspected it: they simply reached a point where they got an 'offer they could not deny' or something like a choice between (a) shutting down their business or (b) going to bed with authorities.
Drew too much attention, 'became too successful', whatever you wanna call it.
Sadly, being centralized by design, the coordinator is a central point of failure and here, it failed.
I do believe they had the choice to be honest and tell their users they have to shut down & maybe start working on a new, decentralized product. But it seems like the choice was to simply give in and start spying & censorship to be able to let the business continue as usual.