As you yourself admitted, hackers and cheaters can get into sites through normal means anyway. You have already shown you don't know what sites are doing with the users' info, previously stating you don't know of a single site that hunts for users to ban when one that shares your irc server clearly does. And as long as we're firing hypotheticals at each other, would you feel bad if a site you shared info with used it to hack your users accounts on other sites? Would you even tell your users who was responsible? The unfortunate incident at HDBits indicates the answer is probably no.
When Valerio stole his own users' login details, only two sites that I know of even mentioned it. Of these two better than avg sites, FTN gave no details about who it was, no indication of which site it was that we should be avoiding, and closed a thread that was discussing it. Bitmetv, whose anal-retentiveness one would hope one could at least count on for a situation such as this, took the time to at least mention the site name, but went out of their way to push the announcement off their front page after barely a day. HDBits itself publicly denied it, to the shame of all of it's staff. I'm told Firon later made a post on the forums admitting; I don't know, I'm not reregging to find out. I'm not regged at your site, so I don't know what you said about it, but you can hardly blame me for not wanting my info so freely shared with admins you seem to have a lot of misplaced trust in.
Someone will surely twist this into me telling you what to do (as if such a proposition even made sense). All I am saying is that your morality play about fine upstanding admins doing what they must to combat the bad bad account traders rings a little hollow to those of us watching what's actually going on.
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