Bans were thrown out to those of us that exploited LFR.
Proof:
i44.tinypic.com/2i6kwsn.png
Throwaway account, obviously. I'm ashamed we even tried it, so I'd like to be anonymous. Every one in our guild ended up deleting all of the gear the next day, we got banned anyways. Even people who didn't receive loot, but were in, were banned. My account has no prior issues.