Shop hack

Banned players don't lose their badges. If it's account disabled, then yes, they'd lose their badges. If it's a temporary ban, the player will not lose their badges. In addition, Dragon Hero was added to the accounts of players who upgraded at any point before July 4, 2011. The badge was added on July 1, 2011. This was to reward players who did not upgrade within the 72 hours, but to make it fair for them, since they did not know about the new shop (and the requirements associated with it).