The same thing happened to a clannie of mine, except in his case the ONLY people that knew his password was him and his wife. A fault in KO's security, and I've had this personally happen, there was a thread about it just recently, is when you enter your details and log on per normal you actually log onto someones elses account. If the items arent sealed off they go. And if you request a rollback or report a compromised account that has multiple ip addresses that access it you got no hope. Pay for gold, seal your items and eradicate the chance of losing the valuable stuff on your account, especially when you have items such as a ds+8.
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