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Let me get this straight.
You gave him shell. And he abused it. And you call him a hacker?
He's not a hacker, or a cracker, if he did not access it without your giving him access to the shell.
Nor is it illegal to modify his character.
All of your entire post - unethical, yes. But nothing of what you claim. You should be careful to whom you give shell access to.
-D
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