Microsoft working with console modders to fight crime?

Remember back in August when the modchip makers at SmartXX got their hands on a few Xbox 360 dev kits (and posted all about 'em online)? Well, it looks like the police finally got involved, but, in
a twist of fate, the boys at SmartXX are now claiming that Microsoft was in on the plan all along, even if MS's right hand didn't seem to know what its left hand was doing.

For more on the strange story of these unlikely bedfellows (at least, from the perspective of SmartXX; MS officially denies all involvement), check out a couple translations of
the original post in German
here and
here, then wonder at what another 14 stolen XeDKs will do for the 360 modding scene (supposedly without cooperation from MS this time around).

[Thanks, Matt,
Xb360info, and Justin]

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