At the beginning of the month we reported that there was some type of deal going on with Digg’s tech and engineering team and the Washington Post. If you remember there was some debate about what exactly the deal was, an acquisition or a highjacking, or whatever. There was no official word from Digg at that time.

Today the Digg Blog reports that indeed Digg’s engineers have left to join a subsidiary of the Washington Post. They will be working on projects at SocialCode, a site dedicated to helping advertisers build communities and get more value from social media.

Here’s what they had to say on the Digg Bog:

“At Digg, we have been studying social media since its inception. From Digg Social Reader to Digg Ads, we established a new paradigm for content and advertising on the web. Joining SocialCode felt like a natural next step.”

The Digg engineers will be joining with the existing SocialCode team and be working out of their offices in San Francisco, Seattle, and D.C., but there’s still no official word on what will happen to the Digg site. We’ll keep you posted as new things happen over at Digg.