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That person can still perform this software repair that uliwooly mentioned earlier. But when a software repair is performed, all the data will be lost so they cannot access your data.
You could use MyXperia or Android device manager to lock your phone.
How exactly is to "reformat" the phone? I only found an option called Software Repair and in the past this option just reflash the firmware but nothing else...
I have tried reflashing the .FTF using another software but still encryption is still there and this critically slow down the performance of the device, so I really wish to decrypt it...