Forty-four-year-old Tadaaki Abe has been arrested in Kagawa, Japan, for modding a PlayStation 3 and then selling it.
According to NHK, Abe is accused of jailbreaking PS3s so game discs could be copied and then played without re-inserting them. He was arrested for selling a modded PS3 for 15,555 yen ($145) to a Tokyo man in his 40s.
Source: https://kotaku.com/in-japan-man-arrested-for-modding-and-reselling-ps3-1838935174
Article is a bit short, but there is more at the link.
Apparently this violates some Japanese law. Personally I don't think this is fair as long as he was disclosing the PS3s have been modified.