Microsoft Deletes Hacked User Account and OneDrive Data

After a cyberattack, Microsoft has permanently suspended a user’s account. The deletion affects Xbox licenses as well as all OneDrive cloud data.

On July 13, 2026, Dutch streamer Joshua Khane shared a message from Microsoft customer support on social media. The message informed him that his Microsoft account had been permanently closed after an unauthorized third party gained access and changed the security details. Khane lost access to his account, which had been created in 2001 for the launch of the original Xbox console.

Microsoft instructed the user to create a new account and repurchase all the digital games he had collected over the past 25 years. The closure also resulted in the deletion of all data on his OneDrive cloud storage, including personal baby photos of his son. The corporation justified the deletion by stating that the cloud service’s encryption prevents the recovery of data once an account is closed. The affected user acknowledged that he had not enabled two-factor authentication for his account.

Risks of transitioning to purely digital platforms

The incident has sparked an online debate regarding ownership rights of digitally purchased content. It comes at a time when the gaming industry is increasingly moving away from physical media. Sony recently announced that it will cease manufacturing physical PlayStation discs starting in January 2028, forcing customers to purchase games exclusively through the digital PlayStation Store. This step faced criticism and has already led to lawsuits in the Netherlands and Mexico. Microsoft is also expected to abandon physical drives with its next console, codenamed Helix, which is planned for 2027 or 2028. According to reports, a system to link physical discs to digital licenses could be tested for Xbox Insiders in the near future.

Legal action and precedents

Whether Khane will pursue legal action to reclaim his account remains unclear. A similar incident occurred shortly before in Brazil. In that case, a user sued Microsoft after his hacked account had been declared unrecoverable via a nearly identical automated message. Although Microsoft contested the lawsuit with a large legal department, a Brazilian court ordered the company to restore the account, including all purchases made, and to pay 400 US dollars in damages.

(red)