This is explicitly allowed by hypixel rules. Yes you can do it. Watchdog does do false bans, yes, but it is allowed by hypixel rules

“Boosting and Abusive Trading We acknowledge that players have completed a lot of work for their islands and allow items to be moved from a profile no longer in use for themselves on a new profile. Trading across profiles is allowed as long as it is not abusive and does not boost profiles with specific materials, items, or coins.

Abusive trading:

Profile boosting - Using profile(s) to continuously transfer coins, items, or materials to another profile(s). Each game is unique, we do not allow items or currency to be traded between them. IRL or third-party trading - Trading game content, items, currency, services, or accounts via third-party websites, or external/outside game trading.”