Blab himself has stated previously that "so long as it does not trigger GameGuard (now Xigncode), you will not be banned".
While Modding is "technically" against the ToS, they are not going after people who mod.
"But Random person XYZ got banned for modding! Its totally True! I have no proof at all that he got banned specifically for Modding, BUT ITS TOTALLY TRUE!" - no...no....just....no...stop it....Modding does not get you banned. Anyone that has ever said "I modded and got banned" was either hacking, buying/selling gold, or using a mod tool which edits the game's memory (which is considered a Hack). Most mods (including mods that I make) do not touch the game's memory in anyway, therefor they are not hacks of any kind.