Apparently, the ban wave has been going on over the past week. So far reports coming in are from the US & Canada. No doubt the rest of the world will soon follow.
From IGN:
"We have taken action against a small percentage of consoles that have been modified to play pirated game discs," a Microsoft spokesperson told IGN. "In line with our commitment to combat piracy and support safer and more secure gameplay for the more than 20 million members of our Xbox LIVE community, we are suspending these modded consoles from Xbox LIVE."
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