The IAC first heard of this on Sep 16th (and through PMs and such so did basically half of Shireroth, so if you were out of the loop the reason is that it's not that important an issue). The initial reaction was to consider sending Hesam and Ardashir a thank you note - they were very productive citizens who gave a lot of their free time to Shireroth for several months and helped us attain the greatest activity in our history so far. We ended up instead going for the "let all flowers bloom" approach - let Hesam have his fun, and hey, what's for lunch?
So, yeah, that's that. The Sword of Vengeance is in Corey's care, and I'm sure that if there still are any doubts about that, Brrapa can come in and clarify the issue. Shireroth is as sovereign as it always was. We can of course discuss whether the Babkhans would have been able to finish their xanatos gambit (too bad Ric was too honest for it), but seriously. I think you should trust this nation a little bit more