Ok, here's the deal. We licensed our code base to SwapNut before GPLing, as cultiv8r pointed out. This means that, even though we later GPLed our code, SwapNut's version is under a separate license. They cannot, however, incorporate any of LimeWire's code since then that includes open source contributions. They are free, however, to continue working off of the licensed code base and to include updates that were not based on open source contributions (code written by the LimeWire team, which is most of it).

We are not actually sure what everyone over at SwapNut is up to right now, as we have not heard anything from them in awhile, but that's basically the extent of the relationship.