I think anything that does anything with out user input is bannable. But then again I've only read that stuff being said in context of botting or multi-boxing,
Transmute the racial weap to a white low level weapon thats not soulbound then transfer it via bank to your alt, and transmute it again for stats. Granted I did this back in the day so it could be patched already but if you're desperate you could give it a go, try it with a useless weapon you don't care about first. Or you could just do dailies and transfer the jugs
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