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You're misinformed modifying your console in anyway while it may void your warranty is not illegal. The only illegal activity really connected with it is software piracy and frankly there is a lot of gray area around that and it can be twisted to fit many different things. There are plenty of legal activities that come from modding, like the fact that making a personal backup copy of a game you own and playing it is not illegal and it protects your original game from damage or homebrew applications that add more function to your console.