No?
Where did you read that? They're still alive and kicking.
'tptacek left it to start a new company. As far as I can tell, Matasano is quite successful and many of its employees are highly regarded hackers and engineers.
Some of what they do:
* cryptopals.com
* microcorruption.com
* cryptoservices.github.io
See also: the 'whoishiring threads every month.EDIT: You should probably respond to his post instead of mine.