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MonsterCloud Owner Accused of Billing Over $19M While Secretly Paying Ransoms to Decrypt Data

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MonsterCloud Owner Accused of Billing Over $19M While Secretly Paying Ransoms to Decrypt Data

The U.S. Department of Justice (DoJ) on Wednesday announced charges against a 50-year-old U.S. and Israeli national for allegedly defrauding ransomware victims by secretly paying the attackers to obtain decryptors while claiming to use proprietary tools to recover their data.

Zohar Pinhasi (aka Zack Silver and Zack Green) has been charged with two counts of wire fraud and one count of wire fraud conspiracy. If convicted, the defendant faces up to 20 years in prison for each count.

"By falsely claiming to decrypt ransomware without paying off the ransomers, the defendant re-victimized his clients while extracting a hefty profit for himself," said U.S. Attorney Joseph Nocella, Jr. for the Eastern District of New York.

Pinhasi, who owned and operated a Florida company called MonsterCloud, is alleged to have made false representations to ransomware victims, urging them not to pay a ransom and claiming to have "proprietary tools" and "advanced decryption techniques" in possession that could be used to recover encrypted data without yielding to ransom demands.

On its website, MonsterCloud claims it uses "advanced decryption techniques and cutting-edge technology" to restore data. Under a section called "Should I Pay The Ransom?," it states, "Paying a ransom to cybercriminals does not guarantee a positive outcome. In fact, it only serves to encourage and reward their illegal behavior."

," stating, "While we strongly advocate not paying ransoms yourselves, we have extensive experience working with ransomware perpetrators and sometimes resort to other means to resolve the ransomware incident for our clients.



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