Just to amplify my point from yesterday. While Reb Michoel Dov Weissmandl was a big tzadik with a pure heart, nevertheless, when you think about how his scheme sounded to others, it is exactly protection money.
The Mafia gets a hold of certain people and demands money, or else they will harm their family or whatever. If they pay up, they will not be hurt. This is one of their major rackets. Besides, what happened to the Mishna in Gittin which says not to ransom captives for huge sums. You have to understand that many Jews said that Jewish money can be used for a permanent solution to build a state which will benefit Jews of all types in the future, and prevent this from happening again, rather than throwing all this money down the drain to the Nazis who may end up using it to kill even more Jews.
Few people would agree that paying protection money is the way to deal with the mob. Most would recommend that the victim go to the authorities and put them out of business and behind bars.