It is illegal and the people that had a contract with them can report this to the police even which can persue the owner of warbawz, It would be best if you have been wronged by this company to state yourself in this thread and leave some form of contact details, so you can all group up, gather evidence together and send the package over towards the authorities.
As always when you rent something from a company, make sure the company is trustable, has full contact details and an address, and is a registered commercial company, with a VAT Number.
I feel sorry for the ones loosing time, servers and most of all money over this and hope they will find a better service in a more trustable company.
Sadly as a game development company this is not something we can legally help you guys with, it was a contract between you (the customer) and the server host...
Good luck guys, with sincere feelings, Vince.