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Microsoft Permanently Suspends Hacked Xbox Account and Deletes 25 Years of OneDrive Files

The irreversible security action exposes gaps in account-recovery rules and is likely to prompt legal challenges and consumer-protection scrutiny.

Overview

  • Twitch streamer Joshua Khane said his 25-year-old Microsoft account was permanently suspended after unauthorized access, and he shared a customer-support email on Tuesday, July 14 that said the action was irreversible and OneDrive files were no longer accessible.
  • Microsoft’s message told the user some purchases cannot be recovered and said titles such as Minecraft would require repurchase on a new account, citing encryption and privacy safeguards that prevent engineers from retrieving deleted OneDrive data.
  • At the time of reporting Microsoft has not issued a broader public statement beyond the support email shared by the user, while Khane’s post has gone viral and other users have reported similar account-recovery problems on social media and forums.
  • The episode is being compared to a recent small-claims court ruling in Brazil that ordered Microsoft to restore a hacked Xbox account and pay damages, a precedent that affected users are citing as a potential legal remedy.
  • Security experts and reporters are urging users to enable two-factor authentication or passkeys and keep independent backups, and the case has renewed debate over the risks of tying digital purchases and personal archives to a single platform account.