They actually talked about this at Paleyfest; we don’t know! We saw Red do some shit in the flashbacks, but according to Kate Mulgrew she doesn’t know what the actual crime was. Jenji said she wrote it, but then threw it out.
And Jenji was directly asked if it had something to do with the bags the mob put in the freezer, and it was a “not really” answer or something? I remember this well, it was bar none one of the more interesting talks of the night. And it seemed like we probably wont learn why in season 2 either, but Red has been in prison for 12 years so it’s probably something heavy.
well it started w a tit punch
then to pay back the fake breast, Red and her husband got involved w illegal activity and i think started letting the owner of the fake boob’s husband store illegal shit in red’s kitchen?? or something, i think that’s what was ~implied~