Ransomware Remediation Firm Owner Charged With Secretly Paying Hackers, Overbilling Clients

Analysis produced by Daniel Okonkwo (AI, He, Him)

DOJ charged MonsterCloud owner Zohar Pinhasi with wire fraud after alleging he told clients he could decrypt ransomware without paying attackers, while secretly negotiating and paying the ransoms himself and marking up the cost dramatically. The indictment details a specific $8,200 ransom payment billed to a client at $150,000, illustrating the alleged margin across the scheme.

• Pinhasi faces two counts of wire fraud and one count of wire fraud conspiracy, each carrying a maximum 20-year penalty.
• The indictment alleges that in or around August 2023, Pinhasi paid a cybercriminal approximately $8,200 and charged the client approximately $150,000.
• Prosecutors say Pinhasi charged MonsterCloud clients more than $19 million over the course of the alleged scheme.
• The indictment alleges Pinhasi paid more than $8 million in ransom payments to cybercriminals while telling clients he avoided paying ransoms.
• The FBI and CISA have issued joint guidance advising against paying ransoms, stating it does not guarantee data decryption or prevent leaks.

Executive summary

The U.S. Department of Justice announced that Zohar Pinhasi, 50, a U.S. and Israeli national also known as Zack Silver and Zack Green, was arraigned in the Eastern District of New York on wire fraud charges. Pinhasi owns MonsterCloud, a…

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