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Jurisdiction. It's tough to prosecute some developer in India or Ukraine from the US.

Ah, okay, good point. You have the option of not employing foreigners though.

And I would assume that as in the UK collective punishment Is legal in the states.

Refusing to sponsor any h1'bs from that country would be one penalty.

Too harsh a penalty I'd say.

Well if you harbour cyber criminals and refuse to extradite they made their bed they have to lay on it