How to respond to Internet blackmail?
If you are being blackmailed online, the first rule is not to panic or engage in dialog with the extortionist. The more you show fear, the more pressure they will put on you. Be sure to save all evidence: screenshots of messages, sender addresses, any details that can help in the investigation. Next, don't try to solve the problem yourself. It is better to immediately contact the police or a lawyer to understand what actions are possible from the point of view of the law. There is a good article on this topic https://azbigmedia.com/business/technology/victim-of-online-blackmail-here-is-what-you-need-to-do/. It describes the basic steps that will help you protect yourself. Another important point - check your accounts, change passwords, enable two-factor authentication to minimize the risks of further hacking.
Fortunately, I have not personally encountered it, but I have heard that such situations are becoming more and more frequent. I think the most important thing is not to panic and not to follow the blackmailers' lead. Apparently, in such cases it is important to preserve evidence and contact law enforcement agencies. And, of course, you should not believe everything that scammers say, because often their goal is simply to intimidate.