I just hope they even try to catch these people. I've tried to look up who's behind that and it's a domain that's with name.com and the server is behind Cloudflare. I'm not Anonymous, so that's the point at which I'm at my wits' end. Someone enraged could file a few reports at their abuse contacts... Just sayin...

There's always the possibility they just catch the boy and just punish him. Letting the even more disgusting people in the background keep doing what they want. Because it would be difficult to get a hold of them. This would be the easiest route for the prosecuters and the least efficient way to deal with this issue as a whole.

Prison at the very least and all the inmates need to know that you engaged in CP.

I didn't follow how the story turned out that closely. I think it was a schoolmate who did this. I kinda split up my answer because I think if a kid/minor is the offender, it's not yet too late to learn how to behave (hopefully). But blackmailing people with nudes is a bit more than the usual bullying and occasional fight between boys we did back in the day. I trust some judge has a look at the individual case and comes up with a proper punishment that factors this in.

What annoys me is the people who offer this service. Advertise for use-cases like this and probably deliberately didn't put any filters in place not even if it's pictures of minors. I think they should be charged, fined and ultimately that business case should be banned. I (anonymously) filed a complaint, after writing that comment in September. But they're still online as of today.

So in my opinion the kid should be taught a lesson and the company should pay for this and be closed for good.