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The Collaborative International Dictionary of English v.0.48:

Blackmail \Black"mail`\, v. t. [imp. & p. p. Blackmailed; p. pr. & vb. n. Blackmailing.] To extort money from by exciting fears of injury other than bodily harm, as injury to reputation, distress of mind, etc.; as, to blackmail a merchant by threatening to expose an alleged fraud. [U. S.] [1913 Webster]