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Not too long ago, it was discovered that an exploit on the Internet found by a group of hackers could allow Xbox Live users to re-use old Microsoft Points codes. News spread quickly, and so did reports that Microsoft lost $1.2 million worth of the virtual currency, which today have been squashed at a Microsoft conference held at this year’s PAX East.

On top of that, Microsoft revealed that they know every single Gamertag that used the exploit, while assuring everyone at the event that they won’t be swinging the banhammer at them — though they said that they will be keeping a close eye on the exploit users to see if they break any of Xbox Live’s rules.

The video below has the audio of the conference, and begins right at the part where Microsoft are asked about the Points exploit.

Source: Youtube

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