Business & Finance
Ransomware recovery firm head indicted for allegedly defrauding clients over ransom payments
A federal grand jury indicted Zohar Pinhasi, and prosecutors allege he falsely promised to decrypt files without paying hackers.
The short version
- A federal grand jury indicted Zohar Pinhasi on charges that he defrauded clients of his ransomware data recovery firm, MonsterCloud.[ProPublica]
- Prosecutors allege Pinhasi told clients he could recover encrypted files without paying hackers, then paid ransoms and added large fees.[Slashdot]
- Investigators allege he charged clients over $19 million while paying more than $8 million in ransoms; he has pleaded not guilty.[ProPublica · Slashdot]
- Pinhasi faces up to 20 years in prison if convicted, and the allegations remain unproven.[ProPublica · Slashdot]
Key facts
- A federal grand jury indicted Zohar Pinhasi on federal charges of defrauding clients of his ransomware data recovery firm, MonsterCloud.[ProPublica · Slashdot]
- Prosecutors allege Pinhasi told clients he could recover encrypted files without paying hackers, but paid ransoms and charged large fees.[Slashdot]
- Investigators allege Pinhasi charged clients over $19 million while paying more than $8 million in ransom payments.[ProPublica · Slashdot]
- In one example, Pinhasi allegedly paid about $8,200 in ransom and charged a client about $150,000.[ProPublica · Slashdot]
- U.S. Attorney Joseph Nocella said in an Oct. 7 press release that the defendant falsely claimed to decrypt ransomware without paying ransomers.[Slashdot]
- A spokesperson for the U.S. Attorney's Office said Pinhasi pleaded not guilty to the federal charges.[ProPublica]
- If convicted, Pinhasi faces up to 20 years in prison.[ProPublica · Slashdot]
What remains uncertain
- The allegations are unproven; the charges are accusations and the case has not reached a verdict.[ProPublica · Slashdot]
- Pinhasi's response to the specific payment allegations beyond his not guilty plea is not reported in the provided sources.[ProPublica · Slashdot]
Sources
Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.