What happens after iPhone Erase Data feature?

My iPhone was stolen today and a little after i found it on find my iphone it suddenly said "can no longer track iphone locked or erased" I'm assuming this means they erased my iphone from putting in the wrong passcode 10 times but is it now factory setting? Can they now use it while they couldn't when it had a passcode and my information.

I neve had that error come up but if it is back to factory settings then yes they can use it as normal I would try to see if you phone company can trace it

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