How would the government respond to this?

A computer hacker who is good enough to gain control of a nuclear missile and launch it becomes a public thing on the news. The hacker cant be located for there many jammers, and the hacker is so good he can get hold of top secret military files. This hacker opens live video chats to his victims in order to make a deal, often money for the release of the victim's software. The hacker never shows his face for he wears a black tinted gas mask with tinted lenses. He uses multiple voice disguisers so his real voice cant be detected. This hacker hacks into a server where top government officials and obama are having a meeting, he hacks the server and his disguised face appears on the screen. By the way he talks he sounds well educated and mysterious, he tells the government how he hacked various terrorist organisations and how he has information regarding most of the most dangerous criminals on earth, he has information that can save lives. He tells the government this and then he says that if they attempt to capture him he will detonate a warhead in any given country killing tens of thousands, and that he is well armed and trained. He offers the government a deal, if the government gives one billion dollars to an anonymous account then he will give the government his information regarding terrorists and give the nuke controls back to who ever owns them. He tells the government that he could destroy the united states because he has internal access to super computers that control every aspect of military and economy and he can launch attacks at any country using hacked predator drones and missiles. The government confirms this because he openly shows them in some way. He then says that he can be the most powerful ally america has ever had, or the one man who destroys the nation. how would the government react.