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If I were in the OP's situation, I would call the police, which is what I would do first. And I need to confirm that it is real blackmail, not a setup to get my money. I won't hesitate or give it much thought because my sister's safety is far more important than bitcoin.
We can earn money again with our jobs, side hustles and businesses. But once life is gone, it cannot be brought back.
That is absolutely true, I don't understand what many people are thinking when they value bitcoin more than their own health, more than the lives of their loved ones. Because we can always buy back bitcoins anytime as long as we have the money. I agree that, over time, the price of bitcoin can get more expensive, but that doesn't mean it can't be bought. Just like now, we're buying bitcoins for $30k, thousands of times more expensive than people buying bitcoins for a few dollars, so there's no reason why we can't get it for more. But our loved one's life is only one, if lost, we have billions of dollars and never bring them back to this life.