I hear about this for the first time. I mean, these scammers demand cryptocurrency from their victims. It seems to me that my friend was telling me something like that.
Then you should tell to your friend what will be the consequences if they continue doing this.
is your friend the one who asking for money or the one giving a video to unknown person?
I guess his friend is the victim. Do you really believe about the video? it's just part of their scam, they don't really have a video unless you have downloaded something and you agreed to allow that app to use your camera and gain access to your contacts.
So, a malware infect your computer that can access and see your activities like opening a webcam and watching porns? There is nothing to worry about if you are not doing such pathethic things like nude actions.
It will only happen if you launch an app of theirs and allow the app to access everything on that device through agreement. I'm not too techie but if someone who's more techie on this thing is/are free to correct me.