Ransomware CEO Charged For Secretly Paying Hackers Instead Of Using Tools To Fix Data

Federal officials announced charges on Wednesday against the owner of a company called MonsterCloud.

Zohar Pinhasi, a fifty-year-old man with U.S. and Israeli citizenship, faced accusations in Brooklyn.

The business told victims they could repair damaged systems without paying ransom gangs.

Prosecutors say Pinhasi promised to use special technology but actually paid the attackers instead.

Clients paid large fees for this service while he sent smaller amounts to the criminals.

Officials allege he collected nineteen million dollars in total charges during a five-year period ending in 2023.

In one case, Pinhasi paid eight thousand dollars to unlock files but charged the client one hundred fifty thousand.

He used false names like Zack Silver when speaking with the groups holding the data.

To prove he could fix things, he showed clients sample files that came from the attackers themselves.

Pinhasi faces charges including wire fraud, which involves using electronic networks to steal money.

Reports differ on the maximum time in prison, citing numbers ranging from twenty to sixty years.

He pleaded not guilty and was allowed to leave on a two million dollar bond while lawyers negotiate.