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US Denies Paying 'Blood Money' for CIA Contractor's Release

U.S. consulate employee Raymond Davis is escorted by police and officials out of court after facing a judge in Lahore, January 28, 2011.

U.S. government officials have denied they paid millions of dollars in "blood money" for the release of a CIA contractor held in Pakistan on double murder charges.

U.S. Secretary of State Hillary Clinton told reporters in Cairo Wednesday that the United States did not pay the reported $2 million to the victim's families in exchange for Raymond Davis' release, but she did not dispute that the families received compensation.

Clinton said the United States is very grateful for their decision that enabled Davis to leave Pakistan and head back home. She added that the U.S. Department of Justice has opened its own investigation into what happened.