1up is reporting that a Chinese individual hacked into Flagship Studios' office network and stole the Hellgate: London source code. At this time nothing is confirmed, but 1up did question Flagship Studios CEO Bill Roper on the supposed theft:

"We've heard the same rumours. Obviously this is of concern to us and we've been looking into it, but we haven't been able to ascertain any further information to substantiate those rumours," said Roper.

1up also reports that the source code is now being sold off using a personal website. That's all we have on the matter for now, but we'll be sure to keep you updated.