zFire Xue (AKA Michael Prime), creator and operator of RedZone, has been remanded to the custody of the US Marshals and is off for four months in prison. I bet you thought you’d heard the last of him already. This may very well be the last you hear of him. Prime entered a guilty plea for four counts of violating his probation following a prior conviction for fraud.

For the two years after his release, he’s not allowed to work anywhere where computers or computer programming are the primary business, not allowed near any online auction site, and not allowed to participate in Second Life, or any online virtual environment or online social network – at least, not without prior written approval from his assigned Probation Officer.

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In just the last 2-3 hours, RedZone – the contentious alt-detecting security system – has been ripped from Second Life this-evening, and its creator zFire Xue (along with TheBoris Gothly) suspended or banned from Second Life.

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zFire Xue’s RedZone apparently has fallen foul of an SQL injection exploit, which seems to have allowed intruders unfettered access to the system, including the Second Life password collection system mentioned previously.

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I’m not sure of the veracity of this, exactly. What you’ll see is a video of what appears to be a communication from zFire Xue to someone else about recording passwords that were incorrectly typed into something (what, exactly? Something related to RedZone? Edit: The RedZone Web-site apparently, so it would be the passwords of RedZone customers, I guess) on the basis that some of those incorrect entries are actually also a person’s Second Life password (non exactly unlikely). Also about sharing that information, along with the geographical location of users.

Watch the video (dated August 2010).

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