It doesn’t seem like the police did much about it because in GGO you have XaXa on the loose, the police probably couldn’t have done much, but they should’ve tried and caught at least a few members.
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IIRC everyone - including Kirito - got official pardons for actions taken within the game. Even if they’d brought members of Laughing Coffin to trial, the fact that “it’s just a game” gives them plausible deniability. A conviction would have been extremely difficult.
