We are voiding all tournaments and SNG's that were running. Everyone will be paid out according to rule 31 here:
http://www.fulltiltpoker.com/tourRules.php
It looks like almost everyone was kicked off at the same time, and tournaments were paused shortly after so it's unlikely anyone had their chips stolen, but if it did happen we will go back and make up the difference.
Very sorry for the inconvenience, and we are still investigating the problem but hope to be back within an hour or two.