Possibly hacked account?

My friend gave his xbox live info to a friend so he can get some mods. He said there was a backup whatever that is and he said try to recover it so I try to recover it but it says the credentials are messed up and tells me to go to account.live.cI'm I did and I put reset password I did then tried to recover it with the new pass still doesnt work it created a knew windows live Id with it and its like the Id he uses for his account isnt even on there anymore what do I do? This srry if u can really understand this.