My theory is that the Nats cut him because they knew if they sent him to the minors he'd have to go to jail because he wouldn't make enough to pay child support.
At least if he could latch on to another team on the major league level, he'd make enough to pay the bills.
So, when they decided they weren't going to keep him on the major league roster... instead of risking him ending up in jail due to finances they let him go to give him a shot at avoiding jail time.