If you're using it to download copyrighted material, or stuff that isn't freeware or specifically made available for download at no cost, it could be illegal and you could be caught, depending on how aggressively your ISP monitors and enforces bittorrent traffic. You could check out the article below, which describes using a bittorrent client (uTorrent) in conjunction with an IP address list, which lets you prevent taking part in file sharing with organizations that might log and use the information against you. This will cause uTorrent to check addresses you share data with against the list, and if they're on the list, they aren't allowed to share with you.
BitTorrent is perfectly legal, for one, because it is a tool to download files. It's no different than using windows to copy a game from someone else's computer. Certain illegal torrents are watched by bots, which automatically record the computer address that uses that torrent.
I know that EA watches some of theirs. You can't protect yourself from getting caught unless you are careful with your downloading.
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