Man, Nintendo is putting their foot down on hacked Pokemon for this generation. If you send a hacked Pokemon over GTS (Global Trade Service, which makes you give a Pokemon to anyone anywhere in the world.) your entire console gets banned from the service. In some cases, it's a permaban. Much of the Pokemon Community is upset at this, but what one must understand is that they have lost sight as to what is legal and what is not. Let me show you below their definitions.
-----------------
What makes a Pokemon legit?
A legit Pokemon is one that is obtained in the physical game and not manipulated in any way. This is the first Zigzagoon you catch from the grass, the shiny you chain fish for, the 6 IV Honedge you hatch, and the legendary Kyogre you soft reset for good IVs.
There is a common misconception that a Pokemon having the pentagon on its summary page means that it is legit. This is false. The pentagon simply indicates that the Pokemon was obtained in gen 6. Pokemon transferred via Pokebank from previous gens will not have the pentagon.
What makes a Pokemon legal?
A legal Pokemon is a Pokemon that is obtained in the physical game and manipulated using outside sources or a Pokemon that is created using outside sources to simulate a Pokemon that is obtained in game. This includes a Pokemon whose IVs you manipulate with Powersaves, a Pokemon you create with Pokegen, and a wild shiny you encounter with RNG abuse.
What makes a Pokemon illegal?
An illegal Pokemon is one that does not simulate Pokemon that you can obtain in the game. This is your 500 IV Arceus, Magikarp with Doom Desire, or shiny Meloetta. You will know that it is illegal because you cannot trade it or use it in online battles.
----------------
Okay, first off, they have what was seen as "legal" or "legit" backwards. A LEGAL Pokemon is one you get normally. However, a LEGIT one is the one you modify with a cheat device or other outside source, but still have what looks LEGAL.
Anyways, the bottom line here is that they have lost sight as to what makes a Pokemon Legal or not Legal in the first place. As far as Nintendo is concerned, if you modify it was a cheat device or other outside source, you get banned, end of discussion.
This sort of thing... I support it. It's been a long time coming, but I knew this would happen sooner or later.