Again with putting the blame on me

I did it to quell his insistent begging. $6 for a piece of mind was not too much to pay for that at the time.

I was only tipped off and then put this user on my ignore list when this member saw what was going on and informed me that the one who I gave this small loan to(Atari) was this user. I removed him when I saw the similar negative message as Atari and another of his alts leave to me just days before but has been since removed when I paid the ransom amount of $20 in bitcoin.
I'm unsure as to why you think paying him off is a good idea. Firstly, there's the ignore button that's always there to "quell his insistent begging".
Whether it's a small amount or not, wasting money by sending it to scammers is not the way to go. Who
cares about untrusted feedback? It's not worth sending $20 to someone just because they post libel about you. Ignore and forget. Would you really pay people to remove their negative feedbacks, regardless of their reputation?
That would just be a waste of money.
Even if you can afford it, you should be prudent. And
yes, I
am blaming you for being scammed. Caveat emptor.