The US Immigration and Customs Enforcement say that the illegal chips and other devices used on gaming consoles violate the Digital Millennium Copyright Act.
In a press release, the Julie Myers, assistant secretary of Homeland Security said the devices were created wit the sole purpose of subverting copyright protections.
She also claimed that these crimes cost legitimate businesses billions of dollars annually and facilitate multiple other layers of criminality, such as smuggling, software piracy and money laundering.
Apparently the investigators have been looking at the targets for about a year.
More here. µ