If the account is hacked, simple call microsoft xbox at 800-469-9269 for assistance but if you simply wanted to cancel it, let me inform you that points, awards, honors are non transferrable to the new account, cancelling xbox live account simply cancelling your gamer tag.
1. go to accounts
2. gamertags, remove the gamertag that you need to cancel.
3. it will ask some security questions or code, once all information is true, account will be cancel and you may create a new one.
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