Who is watching the legality of the actions performed in Second Life?
SL have their own set of rules which every player has to obey. Those rules clearly state that any illegal activity will get a player banned from Second Life.
There are a few ways to check if any illegal activity is taking place:
• Report by other players If any players sees something happening on SL which e finds suspicious, they are able to report that to Linden Labs. They will then investigate the case and take appropriate action.
• Linden Labs moderators LL has their own set of moderators that keep an eye out on any illegal activities
• Third Party There have been cases of third parties who moderate a certain piece of land for a certain fee.
Still this amount of prevention is not always enough to keep illegal activities out of SL. Child pornography and gambling are taking place more often. Here in the Netherlands the state has started a research on child pornography on SL to determine how bad it is and what effects it could have.