From left to right their crimes are as followed
Shadow: aiding the Grinch
Waluigi: 7 acts of vandalism, 76 accounts of battery with a tennis racket, 2 attempted murders one those being a monarch, disturbing the peace, hiring hitmen on the dates of 8/8/18 and 5/12/18
Issac: For aiding the Grinch
Zero: crime by association with the other three

This was written on the police report but after doing some research of my owned I learned the truth. Waluigi had framed Issac and Shadow and planned to do the same to Zero before he was taken into custosy. I gave the three a choice either throw Waluigi under the bus and you will be assist trophies and spirits and with some lucky star probably playable in the future or they are relegated to sub spirits with no abilities. They made their choice and by the end of the day Waluigi was chained behind glass and his purpose as assist trophy to just getting hit. I'm proud of what I did everyday Waluigi is a day Sakurai can sleep easy.

I honestly feel bad for X with how Zero is constantly best representative for his own games.