Consider the translation in space operator in $1D$: $$D(a)=e^{-ia\hat{p}/\hbar}$$ It is unitary - $D(-a)=D^{\dagger}(a)=D^{-1}(a)$ - which implies that $D(a)$ has eigenvalues on the unit circle like all unitaries do.
$D(a)$ acts on a function $f(x)$ by translating it - $$D(a)f(x)=f(x-a)$$
Now consider the case of $f(x)=e^{\lambda x}$:
$$D(a)f(x)=e^{\lambda(x-a)}=e^{-\lambda a}e^{\lambda x}=e^{-\lambda a}f(x)$$
So $f$ is an eigenfunction of the translation operator with eigenvalue $e^{-\lambda a}$ which may be arbitrary large or small for sufficient $\lambda$.
It appears we arrived at a contradiction. How is it solved? Is it enough to consider only eigenfunctions that are normalized wavefunctions? Is it possible that $D(a)$ has eigenstates that are not orthogonal to each other?