If you're talking about the story I think you are, this was debunked/refuted.

https://old.reddit.com/r/google/comments/8l231x/google_banne...

Was it ever proven to be true/fake? This is the one I think: https://news.ycombinator.com/item?id=17115643

If the gmail address linked as the recovery address for the first gsuite admin on a domain is suspended for a T&C violation, then the whole gsuite domain will be suspended too automatically.

Its a good reason to never link a gmail address as a recovery address for gsuite - always use another free mail provider.

For people who have already made that mistake, would switching the recovery address fix it, or is it unfixable?

Also, what if the recovery address is another g suite account in a separate domain?

Would normal users personnal accounts be suspended if set as recovery for their normal work GSuite account if the GSuite admin is suspended?

I personally never link or login with my personnal accounts on work devices, nor do I use work accounts on personal devices.

I don't think so.

T&C violations disable an account and any linked recovery addresses (and accounts with the same recovery phone number).

If an account is disabled, all resources associated are disabled and deleted 30 days later.

A GSuite domain is considered a resource 'owned' by the first admin, so if that account is disabled, so are all in the domain. If it is deleted, so is the domain.

Huh, can you link to the post?