A hacked Xbox player beat Microsoft in court after it suspended his account and told him to buy his games again

A Brazilian Xbox player has won a court ruling against Microsoft after the company permanently suspended his account following a hack and told him to repurchase his digital game library. The user, Ordo_Liberal on Reddit, announced the verdict on July 12, 2026, after a case that began in April, when his account was compromised despite two-factor authentication being enabled.

After detecting unauthorised access and determining that the hacker had changed the account's security details, Microsoft permanently suspended the account. It then told Ordo_Liberal his only option was to buy his games again. The suspension affected not only his Xbox library but also Xbox purchases, Windows licenses, OneDrive files, Microsoft 365, and store apps, blocking access to all of it.

Brazil's Consumer Defence Code allows individuals to bring small-claims cases without a lawyer and without paying court costs. So rather than starting over, Ordo filed a lawsuit. The Brazilian court ruled in his favour, ordering Microsoft to fully restore his account and digital library within 15 days or face a daily fine of 150 reais, around $30, capped at 1,500 reais, roughly $300.

Microsoft was also ordered to pay 2,000 reais, around $400, in damages for emotional distress. Microsoft reportedly deployed a team of 12 lawyers for the trial, suggesting the company was keen to avoid setting an unfavourable precedent.

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At the time of reporting, Ordo_Liberal had not yet had his account restored or received payment. He has also noted that Microsoft may appeal and has opened a GoFundMe as a precautionary legal defence fund.

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What specific account and services were blocked when Microsoft suspended Ordo_Liberal’s account?

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On what legal basis did the Brazilian court order Microsoft to restore the suspended account and library?

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What remedies did the court impose if Microsoft fails to restore the account within 15 days?

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With Sony announcing it will end production of new PlayStation discs in 2028 and Xbox testing disc-to-digital conversion features, the debate over what gamers actually own when they buy digital content continues to grow. Microsoft has not publicly commented on the ruling.