The breach happened in late December. Very recently, persons with high elo were targeted. These individuals had their accounts taken over. Whoever took over the accounts went to repeat the "n" word which as you're aware of, normally gives you a straight up ban.
If you value your Town of Salem account, change your password and of COURSE change any passwords which were the same as your ToS account.
This link will send you an email. When you click on the link inside of the email, it will direct you to the final page of changing your password.
She also said that if "people get stuck in an infinite loop where the Captcha doesn't seem to be letting them through, it is advised they try a different browser. Mainly Chrome seems to sometimes have an issue with the Captcha System."