Microsoft informed Kotaku that the company has ”taken steps to invalidate the codes obtained illegitimately,” so unused codes will no longer work.
Using illegal codes may result in harsher consequences: ”We take safety and security very seriously and require that Xbox Live members use the service in compliance with applicable laws and specifically prohibit people from engaging in illegal activity as a part of our Terms of Use and Code of Conduct,. Our Policy and Enforcement team is evaluating whether or not certain individuals have violated the Terms of Use for Xbox Live and will take the appropriate enforcement on an individual basis.”
Microsoft hasn’t announced when or how these punishments will come down, only that they’re coming down. We can imagine it’ll involve Ye Olde Banhammer.