Getting Legal Notice Threat Over Banned Game Account And Demand For Payment

Hi, I’m looking for legal perspective on this situation.

Recently, I got a Valorant account banned while arguing with my opponents and being what is considered "toxic" by Riot TOS. Basically, I was smurfing(playing on a lower rank) so the opponents were really toxic. One threatened to "r@pe" and "k!ll" my mother and sister. However, I responded that "I am not scared of you because I literally live in the r@pe city of Delhi". This is what Riot said got the account banned. The account was already probably flagged for comms abuse from past warnings and that's why Riot gave a 100-year ban. Account had skins worth 25000 as the owner claims. However, I would have done the same if it was my own account.

The owner of the account is now claiming I caused financial loss because the account had paid cosmetic items.

He has been:

1. demanding compensation money

2. threatening “legal notice in 2 days”

3. claiming he will obtain my IP from the game company

4. calling me from unknown numbers saying a cyber complaint exists in my name

5. posting my name and phone number online on r/valorantindia (now deleted)[One of the comments in the post already got a lot of my personal information including bank details and nearby location, and concluded their comment with "DM for father's name, Aadhar card and current address"]

My questions:

Is there any realistic legal claim for loss of virtual cosmetic items after a ban, especially when account sharing was involved?

Can a lawyer actually send a legal notice without having my physical address?

Can a private person obtain my IP or personal data from a game company in such a situation?

Would demanding money under threat of complaint/notice fall under harassment or extortion instead?

Is there anything I should proactively do legally, or is ignoring the correct approach?

I’m mainly trying to understand whether this is a real legal risk or intimidation to get me to pay them compensation of 5000-25000. I'm a student and cannot afford all of that right now. What can I do about this? This account was given to me by the owner. I didn't "steal" or "hack" into it.

Location: India