I tested this yesterday as I first jumped from Bangkok directly to New York. The first ID that I logged in was temporarily banned (I think it was about 30 mins), still I was able to walk around and sign out. However, the game worked perfectly fine after I signed in with another new ID (while the switching to the first ID was not helpful, cuz the first ID was still in banned period ).
Then I tested again by jumping from NY to Chicago again while logging in with the second ID. The second ID got banned as expected but fortunately the first ID played flawlessly. I do not know how long the second ID banned period took. But today both ID is functional.
I guess the game probably has the system that detect player's GPS status in current position, provided along with maximum travel distance available for the players to play within some range. It may takes some time for the server to adjust your parameter based on your coordinate. But I don't think this is a BAN from the game though.