That's a complicated question.
Fujiwara - the mod lead, and responsible for the source code - is bogged down in Real Life (tm). He has expressed a desire to get back into the project when he has the time and resources, but for now, he just does not have that luxury.
Meanwhile, some of the rest of us have been more preoccupied than usual as well ... but most of the rest of the mod team are still standing by, waiting for activity to resume at previous levels.
So development is sort of stalled right now. Not canceled, but not exactly "active" either.