Variations of this have been going around for years. Sometimes scammers will even work with cam models to record victims sexting over videoconference.
At one point they were targeting Muslim men because they knew the cultural implications of those videos being sent to their communities. I remember reading a story about a raft of suicides linked to that particular scam.
There’s also less sophisticated versions where the scammer will only claim to have hacked the victim’s webcam and demand money to avoid sending it to the victim’s friend list on social media.
After reading about this, I bought a bunch of cheap plastic webcam covers to give to everyone I know. They were only ~$1/ea on Amazon and work great.