The seven-time champion's former bodyguard, Markus Fritsche, was just one of three men who were on trial after hard drives full of confidential images, videos, and health records were stolen.
The court in the German city of Wuppertal heard that over 1500 pieces of confidential information and images were downloaded from a computer and handed to Fritsche, who then passed them on to nightclub bouncer Yilmaz Tozturkan.
Tozturkan and his son, Daniel Lins, denied blackmail, instead insisting that they were offering the Schumacher family a business opportunity.
The trial heard that Tozturkan, who has now been convicted over the £12 million blackmail plot, had claimed that he would upload the confidential information to the dark web unless the money was exchanged.
Michael Schumacher still holds the record for the most drivers' championship titlesMichael Schumacher won his first F1 championship in 1994 with Benetton
Nightclub bouncer jailed for role in Schumacher blackmail
Racing legend Schumacher and his family have maintained a quiet private life since his tragic skiing accident in 2013, which left the former Ferrari star with life-changing injuries.
The 56-year-old has not been seen in public since the accident, and his wife Corinna Schumacher is known to be protective of the family's privacy.
Following the trial, Tozturkan, who is currently in jail for an unrelated crime, was handed a three-year sentence for his role in the blackmail plot, despite the Schumacher family campaigning for five years for what they reportedly described as the 'ultimate betrayal'.
Michael Schumacher's wife, Corinna, has been protective over the family's privacy following her husband's skiing accident
Tozturkan's son, Lins, was handed a six-month suspended sentence, and Schumacher's former bodyguard Fritsche was given a two-year suspended sentence.
In the hearing, the Schumacher family revealed their fear over the fact that they believed one hard drive containing confidential material had still not been recovered despite significant searches of the defendants' addresses being completed.
Prior to the verdict's delivery, Tozturkan told the court: "I’m very sorry and ashamed for what I have done. It was a very disgusting thing. I take full responsibility."
The Schumacher family lawyer, Thilo Damm, said the party planned to appeal against the sentences, adding: "We do not agree with everything the court said. You can rest assured that we will exhaust all legal possibilities at our disposal.
"We don’t know where the missing hard drive is. So there is the possibility of another threat through the back door."