Lizard Squad Calls Off DDoS Attacks On PSN And Xbox Live After Kim Dotcom Offer

It was a very un-merry Christmas for millions of gamers who scored a Microsoft or Sony game console yesterday, or otherwise wanted to partake in some online console gaming, only to find out that both Xbox Live and the PlayStation Network had been rendered unusable due to a DDoS attack. Ah, but of all the unlikely heroes, Kim Dotcom swooped in today like ol' St. Nick and struck a deal with Lizard Squad, the hacker group taking responsibility for the DDoS attacks, to back off so that he could play some Destiny.

Dotcom took to Twitter to offer the Lizard Squad (@LizardMafia) 3,000 lifetime premium Mega accounts worth $99 each. Mega, if you're unaware, is Dotcom's newest online venture -- an encrypted cloud storage and file hosting service in based in New Zealand. He put up the site on the one-year anniversary of the seizure of Megaupload.

Kim Dotcom
Image Source: Flickr (thierry ehrmann)

His intervention in the matter is interesting in part because he's currently fighting efforts to have him extradited to the United States where he would face legal action over Megaupload. He's been accused of a number of crimes, including criminal copyright infringement.

The caveat to Dotcom's offer to Lizard Squad is that they would only receive the benefits of the premium Mega accounts if they stop hacking Xbox Live and PSN, and leave it alone in the future. His offer seems to have worked, at least in part.

Lizard Squad responded to Dotcom's Twitter post by tweeting out that it had ceased its attack and that any lingering downtime is the "just the aftermath." And indeed, Sony is having trouble getting things up and running smoothly again -- it's still offline, according to Sony's PSN status page, while all Xbox Live services have been restored.

Following the positive response by Lizard Squad, Dotcom took a jab at U.S. authorities by tweeting out "diplomacy works" and urging the U.S. government to give it a try. However, one could argue that this wasn't just diplomacy at work, but bribery.

Apparently the attack on Xbox Live and PSN started out as something "simply for laughs," but later became a "real cause" in trying to convince Microsoft and Sony to upgrade their security. They chose Christmas Day for the DDoS attack because "it would anger and reach the largest amount of people -- more people, angry calls for a greater response from the companies."