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CEO of Ransomware Recovery Firm Charged with Fraud

CEO of Ransomware Recovery Firm Charged with Fraud

First seen 7 Oct 2026, 23:33 UTC • •
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ThreatCluster AI
ThreatCluster •October 8, 2026 at 00:31 UTC
  • •Zohar Pinhasi charged with wire fraud for misleading clients about ransomware recovery.
  • •MonsterCloud allegedly paid over $8 million in ransom while charging clients over $19 million.
  • •Pinhasi faces up to 20 years in prison if convicted.

Zohar Pinhasi, owner of MonsterCloud, was charged with wire fraud for allegedly defrauding clients by falsely claiming to decrypt ransomware without paying attackers. The indictment states that from June 2018 to June 2023, Pinhasi paid over $8 million in ransom while charging clients more than $19 million for recovery services. Prosecutors allege that MonsterCloud's contracts misled clients about the company's practices, claiming proprietary technology that did not exist. Instead, Pinhasi reportedly contacted cybercriminals to obtain decryption keys, which he then used to restore clients' files. If convicted, he faces up to 20 years in prison. The case highlights the risks of trusting third-party recovery services in ransomware incidents.

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Timeline

2026-09-23
Pinhasi indicted by federal grand jury
Zohar Pinhasi was indicted for conspiracy to commit wire fraud and wire fraud in connection with his company's ransomware recovery practices.
Justice
2026-10-07
Pinhasi arraigned in federal court
Zohar Pinhasi was arraigned in Brooklyn, pleaded not guilty, and was released on a $2 million bond.
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Common questions

What specific charges does Pinhasi face?
Pinhasi faces one count of conspiracy to commit wire fraud and two counts of wire fraud.
What was MonsterCloud's claimed method for data recovery?
MonsterCloud claimed to use proprietary technology to decrypt data without paying ransoms, which was allegedly false.
What are the potential consequences for Pinhasi?
If convicted, Pinhasi could face up to 20 years in prison for each count.