Federal prosecutors allege that Zohar Pinhasi, owner of Florida ransomware recovery company MonsterCloud LLC, told clients the company could decrypt their files without paying attackers—then paid attackers for decryption keys and charged clients far more. Pinhasi has been charged, not convicted, and is presumed innocent unless and until proven guilty.
What prosecutors say MonsterCloud did
According to the U.S. Attorney’s Office for the Eastern District of New York, Pinhasi promoted MonsterCloud as using “proprietary tools” and “advanced decryption techniques” to restore files without paying ransomware operators. Prosecutors allege he had no special decryption technology. Instead, he allegedly contacted the attackers and paid for a key that MonsterCloud employees then tried to use. The EDNY announcement and the Justice Department’s national announcement describe the accusation.
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The distinction matters: using an attacker-provided key to try to restore files is not the same as independently decrypting them. Nor does file recovery alone establish that the intrusion has been contained or the underlying security problem fixed. FBI Assistant Director in Charge James C. Barnacle Jr. said, “As alleged, Zohar Pinhasi claimed to fix ransomware while never remediating the underlying threat.”
The amounts DOJ says were involved
DOJ cited an alleged August 2023 transaction in which about $8,200 was paid to a cybercriminal while the client was charged about $150,000. Prosecutors further allege that Pinhasi charged clients more than $19 million over the scheme and paid more than $8 million in ransom. These are figures in DOJ’s account of alleged conduct, not findings after a trial.
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Charges and case status
The EDNY says a grand jury indicted Pinhasi on September 23, 2026, and he was arraigned on October 7, 2026. The case is docketed as 26-CR-271 (RER). DOJ lists two counts of wire fraud and one count of wire-fraud conspiracy. Pinhasi is also known as “Zack Silver” and “Zack Green.”
If convicted, he faces a maximum sentence of up to 20 years, according to the EDNY announcement. That is a potential maximum, not a sentence imposed or a prediction of the case’s outcome. The FBI is investigating; the EDNY National Security and Cybercrime Section and DOJ Computer Crime and Intellectual Property Section trial attorneys are handling the case.
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What this case does—and does not—show about ransomware recovery
The case is about prosecutors’ allegation that a provider misrepresented how it obtained keys and what it told clients. It does not establish that every ransomware recovery provider is fraudulent, or that every ransom payment results in successful recovery. A key may fail to restore all data, and paying does not itself resolve the compromise that allowed attackers in.
DOJ summarizes joint FBI and CISA guidance as not recommending that ransomware victims pay. The guidance warns that payment does not guarantee decryption, that systems or data will no longer be compromised, or that data will not be leaked. DOJ’s summary is available in its announcement.
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Questions to ask a recovery provider
This case is not a finding about other providers. For a recovery offer, ask for clear written answers before authorizing work:
Quick Recap
- What method will be used? Ask whether recovery relies on backups, an available decryption tool, an attacker-supplied key, or another approach.
- Could a ransom be paid? Ask whether that is part of the plan, who would authorize it, and how the payment and any related fees would be disclosed.
- What exactly is included? Have the contract specify deliverables, fees, and whether incident containment and remediation are included or separate.
- What outcome is promised? Clarify what happens if files cannot be restored, and do not treat an attempt to use a key as a guarantee of recovery or proof that the intrusion is resolved.
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