| MD5 hashes come from databases. Usually from different neopets fansites, forums etc.
You see every website that you register on uses a database to store all the registration details, including your username, e-mail and an encrypted version of your password, that is mostly in a md5 hash format.
Now the hashes can be obtained illegally either by hacking the site database or simply downloading it if you own the site yourself. Please note that this is something that not just anyone can accomplish and is usually done by people who know what they are doing. This is also punishable by law.
The key to all this is that many people use the same password for their e-mails and other online accounts as they use in those sites/forums. This is how we can easily access neopets accounts if we get a hold of a database. All those famous neopets players probably know better not to use something simple as their passwords and not register with the same passwords on different sites.
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