Ransomware Remediation Company Owner Charged With Allegedly Defrauding Clients
Summary
U.S. prosecutors say MonsterCloud owner Zohar Pinhasi falsely claimed to decrypt ransomware without paying attackers, while allegedly paying them secretly and charging clients far more. He faces three wire-fraud charges.
Key points
- Zohar Pinhasi, owner of Florida-based MonsterCloud, was arraigned on two wire fraud counts and one count of wire fraud conspiracy.
- Prosecutors allege he falsely promoted proprietary tools and advanced techniques to recover files without paying ransomware demands.
- The indictment says he secretly paid attackers for decryption keys and charged clients substantially more than the ransom.
- He allegedly charged clients more than $19 million and paid over $8 million in ransom; one cited case involved an $8,200 ransom and a $150,000 client fee.
- If convicted, Pinhasi faces a maximum of 20 years in prison on each count; the indictment is an allegation and he is presumed innocent.
- FBI and CISA guidance advises ransomware victims not to pay, noting payment does not guarantee recovery or prevent further compromise or data leaks.
Article Details
- Event Type
- Criminal charges alleging wire fraud and wire fraud conspiracy involving a ransomware remediation business.
- Impact
- According to the indictment, clients were allegedly misled about ransomware decryption and charged more than $19 million, while more than $8 million was paid to cybercriminals for ransom payments. The defendant is presumed innocent unless proven guilty.
People
Alexander MindlinAssistant U.S. Attorney for the Eastern District of New York; prosecuting the case.Andrew Tysen DuvaAssistant Attorney General of the Justice Department’s Criminal Division; commented on the prosecution.Brian MundSenior Trial Attorney with the Justice Department’s Computer Crime and Intellectual Property Section; prosecuting the case.James C. Barnacle Jr.Assistant Director of the FBI; commented on the case.Joseph Nocella, Jr.U.S. Attorney for the Eastern District of New York; commented on the case.Lindsey OkenAssistant U.S. Attorney for the Eastern District of New York; prosecuting the case.Vasantha RaoSenior Trial Attorney with the Justice Department’s Computer Crime and Intellectual Property Section; prosecuting the case.Zohar PinhasiDefendant charged in the alleged wire fraud scheme; also known as “Zack Silver” and “Zack Green.”