That wasn't just any server, it was The Silk Road. The Icelandic authorities went through their own court process, though, getting whatever their equivalent to a search warrant is first, then turning over a complete image of the server to the FBI.
> The Icelandic authorities went through their own court process, though, getting whatever their equivalent to a search warrant is first, then turning over a complete image of the server to the FBI.
Which reinforces my point? These countries offer people nothing.
For most business and domestic issues they just lack enforcers, interest, will
For data yeah it would create a silly game if there were attractive hosting privileges. But there still might be a business play here: people flock to Iceland and Switzerland on pure misinterpretations of what a law means in practice.
There was a founder here that chose Iceland servers because of no formal data sharing agreement with US, and people showed case law where the FBI merely asked Reyjavik police to tap a server.
Point being that it could still be a cash cow for US reservations