Protection against phishing, malware, and other threats targeting email and collaboration tools in Microsoft 365
Hi Crawford,
That 550 5.1.8 AS(42004) error usually means Microsoft has restricted the account from sending because suspicious outbound activity was detected, which would fit with the recent compromise.
Since you have already secured the account, the next step is to have a Global Administrator or Security Administrator check Microsoft Defender under Email & collaboration > Review > Restricted entities and unblock your account. If you cannot access that page yourself, it is likely a permissions issue, so your Microsoft 365 administrator will need to do it. Microsoft says sending normally becomes available within about an hour after the restriction is removed.
Thank you, and feel free to respond back for more assistance.