Oct 31, 2026 19:00:00
The CEO of security company MonsterCloud has been indicted for advertising to victims whose systems were encrypted by ransomware attackers that they could ‘recover encrypted files’ and charging exorbitant fees, when in reality they paid ransoms to the attackers to obtain decryption keys and restore the systems.Eastern District of New York | Owner of Florida Ransomware Remediation Company Charged with Defrauding Clients | United States Department of Justicehttps://www.justice.gov/usao-edny/pr/owner-florida-ransomware-remediation-company-charged-defrauding-clientsMonsterCloud CEO Indicted on Federal Fraud Charges in Data Recovery Scheme — ProPublicahttps://www.propublica.org/article/zohar-pinhasi-monstercloud-ransomware-indictmentZohar Pinhashi, the former CEO of MonsterCloud, was indicted on October 7, 2026, on wire fraud charges for allegedly decrypting ransomware without paying ransoms, thereby harming customers again while simultaneously profiting handsomely. FBI Deputy Director James C. Barnacle Jr. stated, ‘Allegations suggest that the defendant claimed to have repaired the ransomware, but did not resolve the underlying threat at all. On the contrary, he turned the peril of victims into a source of profit. The FBI is committed to holding those who sacrifice people who have come to them for help and placed their trust in them accountable.’According to the indictment, Pinhashi claimed that he could decrypt ransomware encryption for customers who had been victims of cybercrime using his ‘proprietary tools’ and ‘advanced decryption techniques.’ However, in reality, Pinhashi is alleged to have used a portion of the fees he received from customers to pay the ransomware attackers and pocketed the rest.For example, in an August 2023 case, Pinhashi paid approximately $8,200 (approximately 1.29 million yen) in ransom to cybercriminals demanding it, and then demanded approximately $150,000 (approximately 23 million yen) from his clients. According to the indictment, he demanded more than $19 million (approximately 3 billion yen) from clients for the entire project, of which more than $8 million (approximately 1.2 billion yen) was paid as ransom.ProPublica , a non-profit, independent news organization in the United States, points out that the current indictment reflects the contents of its 2019 investigative article, ‘ The Trade Secret .’ Pinhashi, who used the alias Zach Greene at the time, told ProPublica in an interview, ‘MonsterCloud has never promised customers a specific data recovery method. The recovery method is our problem, and the data will definitely be returned,’ referring to MonsterCloud’s data recovery method as a ‘trade secret.’Furthermore, in a 2019 investigative article, ProPublica pointed out that John Pistole, who served as Deputy Director under former FBI Director Robert Mueller, was prominently featured in a promotional video on MonsterCloud’s website, in which he advertised that ‘MonsterCloud’s unique technology and expertise protect our professional reputation and the health of our organization.’ However, Pistole’s name was not mentioned in the current indictment, and a spokesperson for the U.S. Attorney’s Office declined to comment on Pistole’s relationship with MonsterCloud. Below is the promotional video featuring Pistole released by MonsterCloud. According to a spokesperson for the U.S. Attorney’s Office, Pinhashi maintains his innocence regarding the charges.
(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s); js.id = id;
js.src = “//connect.facebook.net/ja_JP/sdk.js#xfbml=1&version=v2.5”;
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));
Click Here For The Original Source
——————————————————–
