This guy was involved in classified Government work at several companies, and the question could have been either about that, or vague enough that he could have misinterpreted it as being about that, especially if he had never heard of Bitcoin and had no idea what it was.
The quotes are a little questionable too. How many people really believe that an average street cop in a small town in California would say "This is the guy who created Bitcoin? It looks like he's living a pretty humble life." It's entirely possible they've been massaged a bit to be shorter and more clear. It's not like there's a recording of the conversations, at least not that we have access to.