There are a number of theories as to what that meant. I can tell you this though, encryption is no joke and if it is a CIA asset that was confiscated... there is very little chance that the ISSM (or whatever they call it in the CIA) will be forthcoming about the key.

I am more inclined to believe that the kraken would most likely be some sort of packet capture and if shown, would show exactly the traffic between boxes. Though again, that assumes it's not SSL or some other type of encrypted communication.