Everest is quoting from the new TOS. This is what I got when I tried to log in a few minutes ago:
http://pastebin.com/RmUs7GPg
Over here:
http://modemworld.wordpress.co...
...they're saying that the stuff about the Risk API has gone from both the wiki and the TOS, which makes it sound like they are indeed shutting that down.
So it looks to me like VirWoX is still allowed to trade Lindens, but they'll have to somehow deal with the risk that somebody buys Lindens with a credit card, sells them on VirWoX then cancels the payment, at which point Linden would presumably pass the loss onto VirWoX. I suppose they may be able to mitigate that in other ways - for example, look at avatar age and previous transaction history, and limit how much money you can cash out. They're probably doing a lot of this stuff already. (I remember I had a delay the first time I funded my VirWoX account with Lindens and tried to cash out to Bitcoins.)