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VPS and piracy

Why happen if I store pirated content inside my VPS? I think the answer is pretty obvious, in their TOS should say that if I do that they will BAN me without warning, but can they detect the files? Or worse, what if I download directly into the VPS with torrent or Jdownloader?

From what I understand (and based on USA laws) only if I torrent something they can BAN me, because I'm redistributing something with copyright in their servers, and I don't only refer to games, this can apply to music, movies, etc.

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