Zohar Pinhasi, owner of ransomware recovery company MonsterCloud, has been charged with defrauding victims by secretly paying ransomware operators for decryption keys while falsely claiming to use proprietary technology. The 50-year-old was indicted in September and arraigned in Brooklyn federal court on charges including wire fraud conspiracy. Prosecutors allege the scheme operated from June 2018 to June 2023, with Pinhasi and associates facilitating over $8 million in ransom payments while charging victims more than $19 million for recovery services.
According to the indictment, MonsterCloud advertised decryption methods that did not involve paying cybercriminals, though some contracts acknowledged potential communication with attackers. Prosecutors claim contacting ransomware operators was typically the company’s first approach rather than a last resort. In specific cases cited, Pinhasi allegedly paid approximately $8,200 to a ransomware gang while charging the victim $150,000, and paid about $236,000 while charging another customer $380,000. If convicted, Pinhasi faces up to 20 years in prison. He was released on a $2 million bond after pleading not guilty.
Source: Read the full story at BleepingComputer
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