Exactly same happened to me. I saw it live as I have paypal on my iphone and it alerted me to transactions. He had 2 emails on my acocunt , I have removed these, I have also stopped any payments to Microsoft. So he can login if he likes, but can't purchase anything. My bank also blocked paypal payments, I spotted it before the paypal money reached my account, so nothing came out. Paypal refunded the money 16 hours later. We need to sue Microsoft.
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