In case you don't follow the link to Bantown's Encyclopedia Dramatica entry from the Washington Post security blog:
"In order for the account takeovers to end, Bantown demands that Denise Paolucci post on the front-page LiveJournal news that LJ has been owned by Bantown."
ho is Denise Paolucci? Glad you asked. Apparently, the whole ordeal is the result of a vendetta that Bantown has for Ms. Paolucci.
Personally I find the staggering claim that they swiped 900,000 account passwords a little hard to swallow, but if it is true, it's no wonder that LiveJournal has been nagging about passwords for months and even freezing accounts. Also if this is true, that means you people click on ANYTHING. Sheesh. Considering there's only 2 million active LiveJournal accounts, they have a 50% success rate at obtaining the information necessary to hijack an account. Pretty impressive if you ask me.
People wonder why I'm so cautious about putting too many real-life things out into the internet. This is why ladies and gentlemen: somewhere in some massive file of stolen cookies lies my login information to LiveJournal. The concept of "friends-only" and "private" doesn't really mean much in light of that.