I have no idea what’s going on with TrueCrypt. There’s a good summary of the story at ArsTechnica, and Slashdot, Hacker News, and Reddit all have long comment threads. See also Brian Krebs and Cory Doctorow.
Speculations include a massive hack of the TrueCrypt developers, some Lavabit-like forced shutdown, and an internal power struggle within TrueCrypt. I suppose we’ll have to wait and see what develops.