Second Life is being investigated by German police regarding allegations of users participating in the trading of child abuse images online.
The investigation follows a report by a German television news program hosted by Nick Schader from the Report Mainz News, that uncovered the trading group as well as its members who pay for sex with virtual children. During his virtual investigation, he was asked to pay to attend a meeting where both virtual and real child pornography was being shown. The investigation also uncovered "age play" groups formed around the topic of abuse of virtual children. German police are currently in the process of identifying the Second Life members involved. Linden Labs, the creator of Second Life, has agreed to aid German police in finding these users for the purpose of their prosecution.
Looks like you can't (and shouldn't) live out every fantasy in a virtual land. This is one case where we should all be completely supportive and in agreement of real laws for real people being applicable to avatars in an online game. Unfortunately, Second Life is beginning to mimic MySpace in the most unflattering manner. Much like other communities, certain behavior is still deemed illegal. And for good reason.