Related to their activities leading the console hacking group.
Team Xecuter has had a storied history when it comes to hacking consoles; notably, the original Xbox (hence the name). But apparently, their actions recent of late have now progressed to serious legal trouble. Team Xecuter sells a number of modding devices, including software, for current consoles, and notably for the Nintendo Switch. Coincidentally, they apparently don’t bother mincing word when it comes to the purpose of said devices and software; it’s for piracy.
As such, the FBI has arrested two of their members. The pair, French National 48-year-old Max Louarn, and 51-year-old Canadian Gary Bowser, both stand charged with 11 felony counts related to their activities within the group. The FBI has also charged Yuanning Chen, 35, from Shenzhen, China, though they have not arrested him. The Department of Justice labels Louarn and Bowser as the leaders of the group.
Per the announcement, it seems to be obvious where they went wrong, in at least one place:
According to court documents, the Team Xecuter criminal enterprise is comprised of over a dozen individual members located around the world. These members include developers who exploit vulnerabilities in videogame consoles and design circumvention devices; website designers who create the various websites that promote the enterprise’s devices; suppliers who manufacture the devices; and resellers around the world who sell and distribute the devices.
The indictment alleges that due to the illegal nature of its business, Team Xecuter continuously sought to evade enforcement efforts by victim companies, financial institutions, and law enforcement. Notably, Team Xecuter attempted to protect its overall business by using a wide variety of brands, websites, and distribution channels, according to the indictment. From approximately June 2013 through August 2020, Team Xecuter used a variety of product names for its devices, such as the Gateway 3DS, the Stargate, the TrueBlue Mini, the Classic2Magic, and the SX line of devices that included the SX OS, the SX Pro, the SX Lite, and the SX Core.
According to the indictment, Team Xecuter at times cloaked its illegal activity with a purported desire to support gaming enthusiasts who wanted to design their own videogames for noncommercial use. However, the overwhelming demand and use for the enterprise’s devices was to play pirated videogames. To support this illegal activity, Team Xecuter allegedly helped create and support online libraries of pirated videogames for its customers, and several of the enterprise’s devices came preloaded with numerous pirated videogames. According to the indictment, Team Xecuter was so brazen that it even required customers to purchase a “license” to unlock the full features of its custom firmware, the SX OS, in order to enable the ability to play pirated videogames.
Yeah, that last part (specifically, my emphasis in bold) is probably the reason this is coming down on them right now. While modification is something of a gray area, charging people for such software as they were kinda isn’t. The “license” and library of pirated games are likely to be what gets them, there.
Modern Vintage Gamer goes into this with far more knowledge than I can personally bring to the fore:
This was, however, a move that people could probably see coming, if they were in the know. Earlier in the week, Uberchips, which sold the group’s hardware, agreed to a settlement with Nintendo for $2 million. Nintendo also has a pending suit against the rest of Team Xecuter, which is said to be comprised of about a dozen members. While the group is best known for their work on the original Xbox, they also have devices and software for modding and piracy for a number of other devices, including the PlayStation Classic, as well as Nintendo’s 3DS, NES Classic, Switch, and Switch Lite.
Source: Engadget