Stolen iPod 5th Gen still traceable if restored and connected to wifi by thief?

My sister's iPod touch 5th Gen has been stolen, and it has been switched off. Find my iPhone was enabled. Is her iPod still traceable even if it is restored to factory settings and is connected to wifi by the thief? I understand they will not be able to get any further than this but I am wondering if her ipod might still be able to be located. Thanks in advance.

My understanding is that it can be restored but not make it past the activation lock that needs my sister's Apple ID. (restored but still unusable). So if this is the case, and a wifi connection is established, can we still trace her iPod even after everyhting has been wiped?

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