It's not illegal, but it is dishonest and arguably breaches the rules of the company she was using to do it.
She's had her account removed for a mass flagging of "nudity" - she isn't visibly nude on Instagram (only on Patreon/Snapchat from looking into it more) so she isn't in breech of Instagrams nudity rules which is why it'll be back after a manual review. As for dishonest I've no idea what she actually says on Insta but I'd be surprised if she would banned on it just for telling a lie.