I would say it's a good result all round that the wallet has collapsed. A closed source wallet which sends seed phrases over the internet in plain text to Google has no right to continue to exist. I would suggest everyone uses their back ups to sweep their coins to a better wallet.
Any suggestions which multicoin wallet? One of the main reasons I'm still using Coinomi is because I have had it installed for years. I don't like installing new software (because every app can be a risk). But I guess it's time to move on.