http://joystiq.com/entry/1234000480062401/
Basically, 10 xbox 360 dev kits prototypes were stolen (this was not known until now). A while back, SmartXX posted images of 3 beta kits and the innards. They were attempting to crack the system.
If you read that story, exactly 3 were found after raiding homes. So, SmartXX may be gone for good, if they were the kits that the team was holding
.