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Iptv and IKS are 2 of the most dangerous illegal ways to get caught. Iks is still available but unless u have a dish then u might have problems unless you play really stupid and say that you do not even have a password on your wifi at the time but u had a shady neighbor who offered all kinds of things. iptv is panel based and if the legal get the panel, all those on it are in possible trouble because it logs every channel and the amount of time u watch it. This is even worse that iks if legals get ahold of devises. However I have yet to hear of any enforcement in the US or Canada for iptv yet all though there have been a few scares. I MAY BE WRONG ON THAT FACT.
I might add that xtreme panels are even more dangerous if the legals get a admins system because they can literally pull up everyone else's panels up. I had an issue , now solved , with an admin and he pulled up all three of my providers since I resell different systems as backups in case some scammer runs with the money.
RIP the letter up. Even if it is real, there trying to scare you.. if you pay it your basically saying I'm guilty. Second you really think there going to waste money on lawyers taking you to court.. not going to happen.. it would cost them more then what there asking for.. Deny deny deny!! As far as your concerned your wifi was hacked into, and you had no knowledge of what was transpiring.
This seems like more propaganda. Depending on where you are it's illegal for them to threaten you let that. I would also be interested in the website. The box only a few offered IKS with Nfusion still going seems odd
Ask r/legal. My understanding is an IP does not mean a person. Now if you pay with PayPal or a card with your name that might be a different story.
They tracked you probably thru your reseller. Did you pay using paypal? Was it NFPS/Rocket? Go to satfix.to . You will good advice over there on how to proceed.