We have been covering the consequences of a site getting hacked from the SEO perspective, time and time again. See our hack tag for more articles on that. But it also may impact your Google AdWords campaign.
A AdWords Help thread has discussion that an advertiser noticed his campaigns were stopped and his account looked to be suspended.
An official Google representative, AdWordsPro Sarah, said the account was not suspended but rather "under review." Soon after the webmaster cleaned up the hack, Google reinstated the site both in the organic listings and the paid listings.
But between the time the hack hurt both the paid and free listings, it was a very helpless feeling for the site owner.
Forum discussion at AdWords Help.