Ahotpot chain has offered compensation and an apology after accusing a group of eSports players of blackmail when they spotted live worms in seasoning at one of its restaurants.

ZhangNing complained that he and his fellow players noticed worms that looked similar to maggots while eating at theMixCmall outlet ofFatPanda, a Sichuan-style hotpot chain headquartered in Chengdu.

He uploaded a video online on July 24, demanding three times the bill in compensation, saying it was the second such incident in four days.

It triggered a buzz online, particularly amongeSportsplayers.

The restaurant called the police after checking its surveillance cameras, claiming the diners were trying to blackmail it.

TheMinhangDistrict market watchdog inspected the restaurant but did not spot any worms.

However, the restaurant admitted blame on Wednesday, saying health experts had identified the worms as coming from pepper in the seasoning.

It has offered compensation of 14,700 yuan (US$2,100) and an apology.