PokéBase - Pokémon Q&A
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I haven't been banned but I know a friend who is in possession of an potential Pokemon that could've been hacked. (He got it through the gts in Pokemon home) I'm wondering if the ban would restrict him from playing Pokemon sword as a whole and then he would have to restart the game or get a new one or would be just be banned from online trades/all online functions.

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I dont belive they can ban you just for owning one, but I do know that if you try and take part in an official tournament and they find out you will be disqualified
Oh ok but will they terminate my Nintendo account and shut off my account from the game or would they just like restrict me from online services.
I mean if you get banned it’s probably just going to be the online features
From what ive heard, i dont think they will. Also, if its From the gts i am pretty sure they wont do anything because you didnt hack it

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NO, you cannot be banned from the game as a whole. It will however be banned from onlIne play if it's illegitimate.

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You can’t get banned from Sword and Shield as a whole, and you can’t even be banned from a majority of online play unless you specifically use the Pokémon in Ranked battles.

Source: Experience and using shiny Volcanion in online play all the time

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