I heard somewhere that he was going to replace the sprites
You might be thinking of a different game, Zelda maker. I know this is a hundred days late, but there was a game called Zelda Maker where the creator got a cease and desist whatever and decided to make his own game out of it (Adventure Maker: Runiya, if you're curious). I can't be certain this is what you're thinking of, but it happened around the same time, so it's possible. Hope that helps, even if tremendously late.