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It was forked to veracrypt from memory. And LUKS was already widely available on Linux as alternative.
This is not really the question though. It was forked BECAUSE of the whole "fiasco". OP is asking what happened, as in, what made the dev give up on the project. This was a big topic back then.
Yeah, I found LUKS and LVM to be more intuitive for creating encrypted partitions, and had that on my daily driver by around 2009 or so, so I never really felt the need to try Truecrypt.
Yeah but I never found a way to do whole disk encryption with a decoy OS like TrueCrypt could. Really I don't have a need for that, but it was an amazing feature in my mind.