I highly doubt that anyone has been banned. This is probably a bug that Bandai didn't check when updating the game, it's pretty typical for Bandai. To everyone, I would highly suggest installing the legit app and do a data transfer and see if the account works, I bet it will. Meaning your account isn't banned. I switched over my modded account to the legit app a couple of days ago and it's running fine other than the typical crashing here and there. If it is intentional on Bandai's part, then they may have just made it impossible to use the modded APK or the use of overlay (the mod menu) while in the app giving a connection failure. On the hand I have been using and still am before and after the update on my hacked IPA account and it's working perfectly (again, aside from crashes). So basically, don't get worked up.