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I feel really sorry for you situation. I first suggest talking to the hosting provider and explain what happened. Any decent service will give some discount in this case.

Unfortunately, I can't think of anything else. I wish it was realistic to tell you to go to the police.

Also, if you would give your email, I would definitely consider sending a donation through paypal... Hopefully other readers here will do the same.

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There is one great reason to go to the police: it establishes a paper trail documenting that a crime was committed. It isn't necessary that the police catch the bad guys for that paper trail to be advantageous.

(Examples: police reports make CC disputes and legal declarations much easier and more likely to be given weight as other than self-serving explanations of a deadbeat. It may also trigger insurance policies either for you or for the VPS company.)

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