The email I received: http://pastebin.com/X8Nx6X3A
https://torrentlawyer.wordpress.com/2013/02/22/ceg-tek-dmca-...
https://torrentlawyer.wordpress.com/tag/ira-siegel/
And yes. VPS's almost always store your files in a way that anyone with root to the host can look through your files. They often have automated systems that search everything you store for "bad" files and won't hesitate to contact you when found.
1. Access the settlement. This is like an admission of guilt as they will record that you viewed the settlement. If you access the settlement and subsequently reject it, they will almost certainly sue you and win in court. The settlement offer is likely $1,750 USD or so per infringement.
2. Do not access the settlement and go underground. Then you're hoping that you don't win the lawsuit lottery of the people to whom they've sent settlement offers.
Of course, since you have admitted guilt here in a public setting, your only ethical and moral option is number 1. That said, since you have also admitted to destroying evidence in comments here, the settlement may no longer be an option, and you may have subjected yourself to many thousands of additional damages and possible criminal penalties if you haven't sufficiently anonymized yourself.
There is also a third option of disputing the cease and desist (i.e. arguing that they are mistaken), but I would wager that you would lose that argument.
I am not a lawyer but I did grow up next door to you (in St. Lucia) and I ran a series of movie, anime and video game download sites in the early to mid 2000's. I got these notices all the time.
When I got one I would simply remove the content from one server onto another and all would be well. The end.
Yes I know I was blatantly infringing copyrights, but I was young and didn't care. Also maybe things have changed but my understanding is that there was no way for you to be prosecuted in T&T. At worst your server gets shut down (which did happen to me) and you are banned from using their services.
I think you'll be fine.
1. I would contact an attorney.
Some quick thoughts, but always consult your attorney first before taking any actions.
2. Would NOT access the settlement offer, have your attorney check it out if he recommends it from his computer/IP.
3. Delete and scrub your droplet at Digital Ocean.
4. Maybe delete your Digital Ocean account and open a new one under a new email or use linode for a while.
I expect if you remove your droplet and aren't active on that IP and don't host any of their files or torrent activity in the future this might go away.
Good luck with it.
BTW do you know any secure and anonymous VPS? thanks
Or as Obi Wan would say:
(wave hand) You don't need a secure and anonymous VPS.
(wave hand) You want to go home and rethink your life.
Video Response: https://www.youtube.com/watch?v=G1EkOsY8p_8
Second, I would "cease and desist" running that service (as stated in the letter), be it a torrent proxy or whatever. It's possible for files you torrent to be traced to you (it's traceable at the ISP level.)
That settlement letter is very curious, although accessing it may constitute a form of receipt - and be somehow binding.
Talk to a lawyer. Also I'm sure others on the web have been hit with this sort of thing before.