They said the same thing about the PS3 and the Pentagon... people will find a way through, it is all but inevitable. That being said, it is not illegal to mod a PS4 but is against the EULA. So they can certainly cut you off/end service for doing it.
The person that was doling out codes, that's another story altogether. It is illegal to distribute copyrighted material when you have no legal right to do so.
[Edited by AdmiralP, 11/21/2014 5:45:55 AM]