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version one of the law and order system is in

Monitored Space System
"Monitored Space” are large areas of the Crusader system that are being actively monitored by Crusader Industries. These areas are centered around any active Comm Arrays in Crusader, as well as Cryo-Astro and Port Olisar.
By disabling the Comm Arrays, you can toggle Monitored Space off for that area. Likewise you can reactivate "Monitoring" by activating the local Comm Arrays.
Comm Arrays will be active or disabled at-random when a instance is first brought up.
Disabling a Comm Array has consequences, because no-one except a Criminal would ever want to go unnoticed by Crusader Industries.
Players who are not currently considered a "Criminal" will receive missions for any Comm Arrays that need to be reactivated.
Player character kills made in non-Monitored Space will go unnoticed by local authorities.

Bounty System
In an effort to improve security in the Crusader region while their local staffing is low, Crusader Industries has activated their "Bounty" system and encourages all pilots to hunt down any wanted criminals in their space.
Destroying an empty ship, colliding with a landed ship (in Monitored space), or disabling a Comm Array gives the offending character 1 level of Wanted Criminal.
However, these are not cumulative and will not take your character above 1 Criminal level.
Killing a player character or destroying an occupied ship (in Monitored space) gives 1 Cumulative level of Criminal.
Crusader Security AI will spawn and attack any Criminal (of any wanted level), that enters the area around Cry-Astro Station or Port Olisar.
There are 5 Criminal levels available. At Level 5 point, a global bounty mission is posted to all characters on the server instructing them to hunt down and kill the character.
Each Criminal level adds 30 seconds of "jail time" to your respawn. When a Criminal is killed, they will be locked into their spawn-bedroom for the duration of their penalty time.
If you are killed while at Criminal Level 5, you will be kicked off the server!!
There are only two ways to reduce your Criminal level.
Waiting 10 minutes without committing a crime will naturally reduce the level by 1.
There is a console in Security Post Kareah that you can "hack". Each hack you initiate and complete drops your wanted level by 1.
However, each hack takes 1 minutes to complete, and other criminals can interrupt your hack by initiating their own.

Waiting 10 minutes without committing a crime will naturally reduce the level by 1.

You should have to wait in jail imo. Crime level just naturally going down every 10 mins is pretty lame

I concur, unless the rate of generation goes way up. Personally I think the UEE should be able to "apprehend" you and haul you off to the nearest space port where you spend time in FPS mode with access to the "mini games" like the economy so you aren't technically totally wasting your time locked down.

My guess is that the time is set to 5 minutes because the Mini-Universe is small.