MonsterCloud Owner Charged in Alleged $19M Ransomware Recovery Fraud
Summary
U.S. prosecutors allege MonsterCloud owner Zohar Pinhasi secretly paid ransomware attackers for decryptors while telling clients he could recover their data with proprietary tools, billing them more than $19 million.
Key points
- The DOJ charged Zohar Pinhasi with two counts of wire fraud and one count of wire fraud conspiracy.
- Prosecutors allege he told ransomware victims MonsterCloud could decrypt data without paying attackers, but secretly paid for decryptors instead.
- Pinhasi allegedly billed clients substantially more than the ransom payments, charging more than $19 million and paying over $8 million in ransoms.
- In one alleged case, he paid about $8,200 in ransom and billed the client approximately $150,000.
- In another, he allegedly paid about $236,000 and charged the client about $380,000.
- If convicted, he faces up to 20 years in prison for each count.
Article Details
- Event Type
- Criminal charges alleging wire fraud and conspiracy related to ransomware recovery services.
- Impact
- Prosecutors allege that Zohar Pinhasi secretly paid ransomware actors for decryptors while charging clients substantially more, including more than $19 million in total client charges and more than $8 million in ransom payments. The charges are allegations; if convicted, he faces up to 20 years in prison for each count.