In the first case, you have an entity that has a proven record of breaking the law (on purpose) using technology. I can also argue that the purpose of DoD now is to protect the elites, from the people, but that's another story.

In the second, the legal line is not crossed. It may be crossed at some point by an adult person that can bear responsibility for his actions.

I would not work with both; I can understand how can one not be a hypocrite by choosing to work with the latter and not the former, but not the other way around.

Is it the right moral choice to protect the privacy of a cheater? Maybe, I don't know, I'm struggling to answer that to myself, let alone judge others.