this post was submitted on 14 Aug 2023
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Thank you for clarifying(and sorry for the late answer).
For you (and anyone interested) I will answer the questions you asked.
If the legal threat is real(they have a real chance to win in a court) and there is nothing I could do(come to an agreement, move the hosting to another server etc), then I would close the server.
Server is hosted in Germany
As long as there aren't fines for keeping the website up or I get arrested, I would give a notice, so users can move to another server.