Security · October 11, 2026
Also published in Português (Brasil)
Ransomware Recovery Company Accused of Fraud
A ransomware emergency service company has been accused of fraud by the U.S. Attorney's Office for the Eastern District of New York. The company, MonsterCloud, claims to have advanced technology and professional tools to recover encrypted files but reportedly negotiates ransom payments with hackers instead of using these promised services.
Zohar Pinhasi, the head of MonsterCloud, allegedly charged customers high fees for data recovery, such as up to 150,000 dollars in one instance, while paying hackers 8,200 dollars for a decryption key. The company’s contract states that if all recovery methods fail, they may negotiate with attackers, but the actual methods used are limited to contacting hackers.
The lawsuit claims that Pinhasi collected over 19 million dollars in recovery fees from hundreds of companies in the U.S. and Canada while paying hackers over 8 million dollars in ransom. After appearing in court, Pinhasi pleaded not guilty and was released after not paying a 2 million dollars bail.
Pinhasi maintained that the company never guaranteed customers that they could decrypt their files and argued that recovery methods vary by case, considering specific practices to be trade secrets. However, prosecutors dismissed his claims, citing that he concealed the actual recovery methods and ransom payments. This raises additional legal risks, as some companies are prohibited from paying ransoms, which could implicate them in legal issues due to Pinhasi's actions.