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No. That means "I've already been in jail" (more colloquial would be "already did my time" I guess). It comes from a phrase "сидеть в тюрьме".

It's a rather rude word for "ass". Used to be unprintable, but these days you can meet it now and then in books, and sometimes even in newspapers. When it doesn't denote a part of human body :) it...