Definitely not do the bad thing, it just gives them more dirt to use against me. I'd hope that their blackmail message was via a messenger, rather than face-to-face so it gives me evidence. That would be nice but non-essential.
If there is no evidence, I would call the police and explain the situation to them, myself. I understand that it looks fishy but I have enough faith in the legal system to tell the difference between truth and lies and not falsely convict me.
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