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What is the threat that this person is making? Was this video recorded with your permission? Why would the police not make a report or investigate this?
Thank you for the additional information. The issue with him owing you money is a civil issue, not criminal, so if you want the balance back for the loan, you would need to sue him in small claims court. Now, the issue with video and his actions, could be criminal. It is not a situation where he is saying to give him X or not go after him for Y but a situation where he alleges you are talking about him. He says that he has "videos" of you, meaning plural, so if he recorded these without your consent and knowledge, he could be prosecuted. It appears that the police think this could be resolved by not speaking about him or giving him reason to believe but he did not necessarily say he is going to release these, even though it would appear that is the undertone of his message.
I just wanted to follow up and see if you had any other questions or needed me to clarify something. I am here to help, so please let me know. Thanks!