How was that done? You have to get the plain text password when it is time to "snipe" the name in order to login to their account. If you can get the password in plain text someone else can too so that seems pointless.With that being said, we just finished encrypting all mojang account passwords.
On another note, you should be grateful Ninja1 is giving you free accounts, I know I wouldn't. You can't blame him it's your own faults. What did you expect would happen when you enter your credentials on an unofficial site.
