My iPhone was stolen and now I am being threatened to unlock it!

To make it more complicated, I am in England, I had my phone stolen in Amsterdam and now it's in Morroco. Where I'm being emailed by someone with my personal photos, saying if I don't unblock iCloud he will publish all my personal stuff over the web. He is also constantly trying to reset my Apple password.

Unless the photo's are something that would cause embarrassment, I'd tell them to go F&^K themselves.  They'll never be able to sell it or use it after you change your Apple ID password.  Plus your cell carrier should be able to remote disable the phone as well. 
I had an iPhone stolen over a year ago.  My carrier is AT&T and they remote disabled the phone as I could not wipe it.  Yes, I had Find My iPhone enabled, and I always have a 4 digit pin code.  The phone never appeared as online for me to wipe it.  So, I just let AT&T remote disable it, and bought a new phone. 

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