A Cybersecurity Expert Said He Could Beat Ransomware. Prosecutors Say He Paid Hackers More Than $8 Million

The man, Zohar Pinhasi, who is also known as “Zack Silver” and “Zack Green,” was arraigned last week in the Eastern District of New York. He allegedly told prospective clients that his company, MonsterCloud, could offer a principled alternative to paying off ransomware attackers. 

“By falsely claiming to decrypt ransomware without paying off the ransomers, the defendant re-victimized his clients while extracting a hefty profit for himself,” U.S. Attorney Joseph Nocella Jr. for the Eastern District of New York wrote in a press release. “Our Office will vigorously prosecute ransomware attackers who prey on Americans from across the world and those who cynically profit from their criminal activity.” 

According to the indictment, Pinhasi claimed to help distressed business owners who were victims of cybercriminals without paying ransoms. His company, MonsterCloud, cautioned clients not to pay any ransoms and claimed that its team specialized in helping businesses recover their data without succumbing to demands from cybercriminals. 

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The U.S. Attorney’s Office alleges that Pinhasi had no special technology to decrypt data, even though he presented himself as having access to “proprietary tools” and “advanced decryption techniques.” Instead, Pinhasi allegedly contacted and paid the cybercriminals who had victimized clients in exchange for decryption keys. 

Pinhasi launched MonsterCloud, a Florida-based cybersecurity and IT management company, in 2003. In a 2020 press release, MonsterCloud described itself as a company aimed at mitigating the effects of ransomware attacks.

“MonsterCloud advises that victims of ransomware attacks not pay the ransom. When they do, there is no guarantee they will get their data back,” the company said in a press release.