Shutting down the growth prospects of a company based, not on its behavior, but on the capability of its models right before the IPOs of the companies you're going to profit from is staggeringly dumb. Yes the public is stupid when it comes to investing in stocks, but come on. If these companies growth prospects rest in large part on continuing to improve their products and the government said that if they do they face National Security Cease and Desist letters, then investing is a bad idea.

The selfish / corrupt thing to do is to do this after you've fleeced the public.