From Fedora Project Wiki

Truecrypt license troubles

Currently I use truecrypt to encrypt private data. Reading the section on truecrypt spawns many questions. The main two issues are:

Q: What is wrong with the license?
A: Short answer, lots. With every major revision of the TrueCrypt license, it becomes less risky, but it is still non-free. We are hopeful that a discussion between TrueCrypt and the FSF will help resolve the remaining issues, but this has yet to occur.

Q: Maybe a pointer to the discussion or a summary of the discussion is in order
A: An older discussion is here:

Q: What alternatives could (easily) replace truecrypt?
A: Sorry, this is not my area of expertise.

Q: Would it be possible to spawn a new truecrypt and have a different license?
A: No.

Q: For instance could someone change it to being GPL-ed?
A: Only the TrueCrypt copyright holders could choose to do that, and they have never done so (afaik).

Q: Or is that one of the problems?
A: Strictly speaking, it is not one of the problems. The fact that the license is non-free is the primary problem.

Thank you for answering these questions. So, in summary, either the truecrypt guys go talk with FSF or we need to find an alternative.