lol.. difficulty in reading comprehension? let me try a third time When you aquire something circumventing safeguards the system has in place to prevent you from aquiring it in that manner at the detrimental to others and then use your ill gotten gains to enrich yourself...or to commit illegal activities.... otherwise it is a civil breach of contract. which will likely just get your account cancelled.
although that may not be long as ever since that kid killed herself when being bullied..by someone who entered fake info, the federal govt is looking closely at making violating the tos as a computer crime as illegal access to a private computer system and theft of service as you had no authorization to use the services because you broke the tos. so don't be suprised if that changes.. and simply lieing on your xbox live account becomes a felony.