The hacker group Lizard Squad, which claims responsibility for the Xmas blackout on Xbox Live and PSN, has discovered its own network has been hacked.

After allegedly attacking Xbox Live and the PSN during the Christmas period, Lizard Squad went on to promote its "boot-for-hire" service, which allows paying customers to nominate a website they would like to take down for a small fee.

However, this Lizard Squad Stresser tool was itself hacked, with an unsolicited user obtaining details of the entire roster of 14,241 people who signed up to the service. Investigative journalist Brian Krebs obtained a copy of the data dump, and noted that few precautions were taken to protect the identity of customers.

"All registered usernames and passwords were stored in plain text," he wrote on his personal site.

The revelations come after an 18 year-old hacker, based in the English seaside town of Southport, was arrested by local police under suspicion that he worked for Lizard Squad.

GameSpot has confirmed with the Thames Valley Police that the man was arrested in connection with the investigation into the PSN and Xbox Live attacks, as well as on suspicion of being involved with "swatting."

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