What they did was illegal, and you absolutely can (and are encouraged to do so by Microsoft) sue them in small claims court for your Minecraft account back.

> and are encouraged to do so by Microsoft

Source? It seems that if they wanted people to get their lost accounts back, there's more efficient, less expensive ways of doing it?

"Encourage" may be a strong word, but it's specifically outlined in the Microsoft Services Agreement:

> 11. Choice of Law and Place to Resolve Disputes. If you live in (or, if a business, your principal place of business is in) the United States, the laws of the state where you live (or, if a business, where your principal place of business is located) govern all claims, regardless of conflict of laws principles, except that the Federal Arbitration Act governs all provisions relating to arbitration. You and we irrevocably consent to the exclusive jurisdiction and venue of the state or federal courts in King County, Washington, for all disputes arising out of or relating to these Terms or the Services that are not heard in arbitration or small claims court.