Pod2g developed the SHAtter exploit and it was copyrighted. The rights to the shatter exploit were extended to the chronic and dev teams to use in their tools. Ihaz3's website was the subject of a ddos attack and was down for a while. In response he was going to post the shatter exploit for all to see. Last I had heard was that Ihaz3 was holding off on posting it as of yet. I am not sure whether or not they have. Chronic's response as the coding to use the exploit is copyrighted was to threaten legal action against anyone who would post their code. Law enforcement was unable to get co-operation from apple with the software and the software the chronic developed was able to access information that normally is not disclosed. For example your iphone stores a database of websites and gps coordinates in the memory. Chronic team created the tool for LE to be able to dump a phone to see where it had been, messages that were sent, and such.
Apple and Google both have been relutant to disclose certain api's for LE and governmental use. The Army has been looking at using iphones and android phones to provide real time battle information to soldiers from drones and such. They have gotten the programs to work but have needed access to some of the security api's to make the connection more secure. Apple and Google have not granted that access. Thus why LE went to the hacker community for help.
What it boils down to is that if the code gets out, the exploit and the code used to make it functional which is an integral part of the software that LE uses, the tool that LE has is effectively useless and data can be erased or modified by criminal enterprises. They never threatened that LE was going to go after them. They just stated that they would not be happy if the source code to their tool was released to the public. They only legal action that has been threatened was copy right infringement and C&D letter to those who publish the code and are not authorized to do so.