Schumacher is widely considered one of the best drivers to have ever graced the F1 stage, with his seven world title wins matched only by Mercedes star Lewis Hamilton.
The German first showcased his undoubted talent with Jordan in the early 90s, before moving to Benetton, where he clinched back-to-back championships in 1994 and 1995.
He then completed a move to Ferrari, where he cemented his legacy as an icon of the sport, winning five titles in succession from 2000-2004.
Shortly after his retirement in 2012, Schumacher - whose son Mick races as a reserve driver for Mercedes - suffered a severe brain injury as a result of a skiing accident, and was placed into a medically induced coma.
Very few details have been released by his family since the incident, who continue to care for the 55-year-old in his Swiss home.
They have been subjected to more trauma following the shock revelations which have now surfaced.
According to BILD, two German nationals were arrested in connection with a plot to blackmail the family, before being sent to face a judge in Wuppertal District Court.
The report from the German media outlet states that the men have been accused of attempted extortion, and could be handed a five-year jail sentence should they be convicted.
Wolf-Tilman Baumert, spokesman for the public prosecutor's office, told BILD: "We are investigating a case of blackmail to the detriment of a celebrity and have executed arrest warrants in this case."