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A Reddit User Admitted To Pirating a Movie 12 Years Ago. Movie Studios Want To Unmask Him.
(reclaimthenet.org)
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That's what I said though.
Your ISP can't see what you're downloading if you encrypt, but the IP (intellectual property) enforcers still can if they're participating in the torrent. Then they find out which ISP that IP (address) belongs to and sends them a letter saying "we caught your subscriber downloading XYZ illegally."
However, at least one US district court has ruled that just catching an IP address downloading a torrent illegally isn't proof that any particular person illegally downloaded the IP (intellectual property). As a result, some ISPs simply ignore the letters the IP enforcers send, while some of the bigger ones count "strikes" against the subscriber with that IP address.