I'll be blunt, unless I get told otherwise I'd assume it's 100% against TOS and considered a Zero Tolerance violation permanent suspension.
Warez: Includes pirated software, ROMS, emulators, phreaking, hacking, password cracking, IP spoofing, etc... This also includes any sites which provide "links to" or "how to" information about such material.
I know it's in the Warez section but that's where it's got the "hacking and password cracking" stuff. As for being able to run a warez site without getting caught: huh? The admins have direct file access. As in "bypass folder protection and view what you're storing directly, should suspicion arise," and it probably -would- raise some flags when a mysterious folder starts getting all the traffic.
My thinking on this? White hat VS Black hat hardly matters. Get caught either way and the person getting hacked presses charges, and you're in the same boat whether it was with good intentions or not. I don't believe the US Court system recognizes a difference between white/black hats, which could put this in the section of the TOS regarding information illegal in any Federal, State, or Local legislations.