Speaking from experience you're gonna find yourself SOL sooner or later. Best thing you can do is make sure your code/areas are secure and be wayyyy more careful who you trust with access in the future - also, I can appreciate that this is hard, but try not to give any publicity to their mud ever again (e.g. giving the link), as the saying goes "no publicity is bad publicity".
Codebases get stolen a lot. There are some screwed up people in this world. At least they havent rm -rf *.* ....
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