Hey everyone, I'm here with an update.
I ended up talking to a variety of parties. I talked to a non-charitable legal service which focuses on cyber crime and identity concerns, a confidential student advocacy group, a school psychology counsellor and my university's legal group for students.
All of these groups all essentially agreed on one thing: I'm technically in no violation of any university policy as I didn't submit any work that wasn't mine and thus I didn't plagarise anything. Further, if accused, I could utilise all of my actions along with the help of the student advocacy group (which specialises on academic misconduct) to fight the accusation.
Additionally, I filed a dispute with PayPal. The company sent me emails trying to intimidate me with more threats, however, the company never responded to the PayPal dispute so I ended up getting a refund. Also, I've not to had face any repercussions from the university as well.