Anyone ever had their Xbox live account hacked?

So maybe a year or so, maybe a little less, my Xbox live account was hacked....everything was changed...password email, credit card etc. (I cancelled credit card after 1 bogus charge) but I never realized the fraud came from Xbox until recently, about 1 month ago.....well basically whoever this person was destroyed my online rep in the games I played, with the people on my friends list etc...but the thing is the person impersonated me all over forums, leagues what have you.....I was a pretty avid 2k player in leagues etc and whoever this person was (I assume someone I ? on and ? off in a league etc) jumped in a bunch of leagues and with their friends just destroyed my rep within that community of basketball players etc.....I could care less about my video game rep being destroyed honestly, but I was just wondering if anyone ever encountered this?

I can't even to begin to explain to former people I played with, cuz they
1) don't believe me
2) have all these crazy stories of what the guy or girl ? Did....them and their friends created fake face books (face books were used to play in nba 2k leagues FYI), names , gamer tags, everything.....I can't check what happens with the gamer tag really or what they did just hear second hand stories etc.

And I'm not a crazy gamer at all, so I found it crazy some nerd went to this level of nerdom lol

I caught some legal trouble in the middle of all this and didn't have my eye on it until a much while later.....anyone had there account hacked before?