Lavabit, a privacy-centric email provider that was dragged into the media spotlight after Edward Snowden used its service to contact journalists, has shut down in an effort to avoid handing user data over to the government. SiliconANGLE Contributing Editor John Casaretto discussed the news in a recent interview with NewsDesk host Kristin Feledy.

John says that Lavabit founder Ladar Levison chose to halt operations because he didn’t want to become complicit in what he called “crimes against the American people.” The most likely reason behind’s Levinson reluctance to provide further explanation is that as a person of interest in an ongoing national security investigation, he has been issued a gag order.

John commends Levinson for sticking to his principles, but notes that it’s not unreasonable of the government to assume that users of a service such as Lavabit have something to hide. The investigation is disturbing nonetheless, he adds, even more so in light of the fact that this type of incident is not unprecedented.

The public is becoming increasingly informed and concerned about the government’s apparent disregard of user privacy. John views this as a positive trend, and remarks that the overwhelming majority of companies with physical ties to the U.S. can’t ensure their customers’ privacy. The exceptions are providers that store data offshore.

Kristin mentions that a Washington, D.C.-based think tank called Information Technology and Innovation Foundation predicts that U.S. cloud providers will lose as much as $35 billion dollars in the aftermath of the Snowden scandal. John agrees that a blowback is inevitable.

See the video below for the full analysis of the story, including more on the balance between individual freedom and national security.