I too ran in to a problem after upgrading a luks full disk encrypted
12.04.5 system to 14.04.1. After successfully upgrading, upon reboot I
was asked for the luks password for the root system. After entering the
password, I see sever errors including "/sbin/cryptsetup not found".

After doing research I came across bug
https://bugs.launchpad.net/ubuntu/+source/cryptsetup/+bug/1256730. After
booting from a rescue cd, creating the file in comment #4 and updating
the initrd, the cryptsetup could be found in the initrd.

Another reboot and all was good.

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https://bugs.launchpad.net/bugs/1237556

Title:
  cryptsetup removed from initrd.img on upgrade to 13.10

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