The fact that a current password was used is of concern.

When did you change your password the last time? Years ago? Most likely the password was obtained from breaches of online services like Yahoo, LinkedIn, eBay, or YouPorn.

I have changed my password in as many sites as I can think of.

That's the right move. In addition use a password manager to generate random passwords, and don't use the same password for multiple accounts.

Any suggestions as to what I shoudl do next?

Don't pay. Does the message you got look similar to this?

I'm aware, [Passwort], is your pass word. You don't know me and you're most likely thinking why you're getting this e-mail, right?

In fact, I actually setup a malware on the adult videos (pornographic material) web site and guess what, you visited this website to have fun (you know what I mean). While you were watching video clips, your internet browser began operating as a RDP (Remote control Desktop) with a key logger which provided me with accessibility to your screen and also web camera. after that, my software program gathered your entire contacts from your Messenger, Facebook, and email.

What did I do?

I made a double-screen video. First part displays the video you were viewing (you have a fine taste haha . . .), and next part shows the recording of your web cam.

exactly what should you do?

Well, in my opinion, $2900 is a reasonable price for our little secret. You will make the payment through Bitcoin (if you don't know this, search "how to buy bitcoin" in Google).

BTC Address: 1Kh***
(It is cAsE sensitive, so copy and paste it)

Important:
You have one day in order to make the payment. (I have a special pixel within this e-mail, and right now I know that you have read through this mail). If I do not receive the BitCoins, I definitely will send your video recording to all of your contacts including friends and family, co-workers, etc. Nevertheless, if I receive the payment, I will erase the video immidiately. If you really want evidence, reply with "Yes!" and I will send your video to your 9 friends. This is a non-negotiable offer, so please don't waste my personal time and yours by responding to this email message

Thank you so much for answering- I have no intention of responding or paying.

That is almost exactly the message I received- with a much higher asking price!

The email cited is not my password for Mozilla- it is one I used in the past for EBay and LinkedIN, and was current for a few sites such as Wayfair and Overstock.

Thank you so much for taking the time to answer. I will take your suggestions.

The FBI operates a site to gather information on internet crimes. If you decide you want to report this, that might be a reasonable place to submit it:

https://www.ic3.gov/default.aspx

Here is an article about this scam. https://www.kshb.com/money/consumer/dont-waste-your-money/scary-porn-blackmail-scam-knows-your-password

Thanks to all- what a great resource this community is.