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Lizard Squad agrees to online truce after Christmas hacks

Kim Dotcom is Sony and Microsoft's Christmas hero.

After a hack attack that occurred on Christmas Eve left the Sony PlayStation Network and Microsoft Xbox Live out for two days, internet entrepreneur and Megaupload owner Kim Dotcom made a deal with the assailants, which eventually stopped the attack.

Kim Dotcom has come to an agreement with Lizard Squad, giving them 3,000 premium MegaPrivacy vouchers from Dotcom's company, which allows them end-to-end encryption and secure storage services.

He says the accounts are worth some $300,000 (£190,000).

Dotcom called the outage on the online gaming platforms an “attack on Christmas”, and asked that these kinds of attacks stop happening.

After the deal was reached, the group announced that they had stopped the attack.

It will take some time for the networks to become fully functional again, because of lots of people trying to get back online at the same time.

Black hat hacking group Lizard Squad, known for their claims of distributed denial-of-service (DDoS) attacks to disrupt services related to gaming, claimed responsibility for this attack

On 3 September 2014, Lizard Squad seemingly announced that it had disbanded only to return later on.

Kim Dotcom, also known as Kimble and Kim Tim Jim Vestor, is a German-Finnish Internet entrepreneur, businessman, and political party founder currently residing in New Zealand.

He is the founder of file hosting service Mega as well as its now defunct predecessor Megaupload.

In politics he is the founder, main funder, and "party visionary" of New Zealand's Internet Party.