From telekinesis to rewriting reality, magic in the MLP universe can do a lot. There is an entire branch of magic affiliated with crystals and the mind called "dark magic" that's completely forbidden for anyone other than Celestia, Twilight, and (presumably) Luna to even know about. I'd also say that Equestria is not free of crime, though crimes of the more ugly sort are likely much rarer. Still, when a pony's future hinges on their innocence Celestia is likely to be called in.

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