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It was only pulled from github because of the red waves load screen.Yes, it's illegal - at least for what 99.9% of people use it for. There's a reason Nintendo got it pulled from Github.
No, the odds of anything happening to you are really small, as long as you're discreet about it. See kongsnutz for more info on that.
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Nice to see you here again :-)freeShop itself, the homebrew app, is not illegal. The act of piracy itself is illegal no matter what app is used to install pirated games. Basically freeShop is as legal FBI, ciangel, and other apps, it's how someone uses that determines the legality of their actions.