A core developer quit and forked it to make freenginx, based on a claim of corporate interference in security practices.
This was about 6 months ago and probably what you are thinking of. Its still open source, there doesn't seem to be anything that's come of the issue that was the cause of the split, and nginx is still actively developed.
Oh I'm not complaining. Its quick and simple to navigate. I don't need flash, I need function.
I wouldn't mind updates with that aspect kept in mind, but I'm not going to complain about it either. I think more websites could use debian.org as an example.