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US-Israeli Zohar Pinhasi charged with wire fraud over MonsterCloud ransomware scheme

Federal prosecutors in New York charged Zohar Pinhasi, 50, a US-Israeli dual national, with wire fraud. They allege his Florida firm MonsterCloud secretly paid hackers for decryption keys while telling clients it used its own technology.

2 outlets · 0L · 0C · 2R First reported Account updated
Image: The Jerusalem Post
Image: JNS

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The story, neutrally told

Right · 2Zohar Pinhasi, a 50-year-old US-Israeli dual national, was charged with wire fraud in federal court in New York, according to the US Justice Department. Right · 2Prosecutors allege that Pinhasi owned MonsterCloud, a Florida company that marketed itself as an alternative to paying ransomware demands, claiming to use proprietary tools and advanced decryption techniques to recover victims' data. Right · 2They say he instead contacted the attackers behind his clients' cyberattacks, paid them for decryption keys, and billed the clients far more than he paid.

Right · 2In one 2023 case, Pinhasi allegedly charged a client about $150,000 and paid a cybercriminal about $8,200 for the key. Overall, prosecutors allege he collected more than $19 million in fees and paid more than $8 million to hackers. Right · 1The Jerusalem Post reports that MonsterCloud's website carried testimonials, some from paid spokespersons, and that in 2019 a paid spokesperson asked whether the company really used proprietary software. Pinhasi allegedly replied that MonsterCloud "doesn't hold any Proprietary technology [to] decrypt the ransomware data." Right · 2He is also alleged to have used the names "Zack Silver" and "Zach Green" (JNS spells the second "Zack Green").

Right · 1Joseph Nocella Jr., US attorney for the Eastern District of New York, said that by falsely claiming to decrypt ransomware without paying the ransomers, Pinhasi "re-victimized his clients while extracting a hefty profit for himself." Right · 2The Jerusalem Post says the charges are two counts of wire fraud and one of wire fraud conspiracy, each carrying a maximum of 20 years in prison; JNS says only that he faces wire fraud charges with a 20-year maximum. The allegations have not been tested in court.

Every sentence links to the reporting it rests on. The pill in front of each says where its sources sit: Left, Centre or Right when one side supplies at least half of them, Mixed when they are evenly split. The number is how many outlets it cites.

Left0 outlets

No left outlet in our sources has covered this story yet.

Centre0 outlets

No centre outlet in our sources has covered this story yet.

Right2 outlets

Framing
Both Israeli right-leaning outlets report the case as a straightforward fraud prosecution of an Israeli-American, leading on the allegation that he paid hackers while claiming to decrypt data himself.
Emphasis
The markup between what was paid to hackers and what clients were charged, with dollar figures. JNS adds the US attorney's quote and the Florida location; the Jerusalem Post adds the paid testimonials and the 2019 exchange.
Leaves out or plays down
Neither reports a defence response or plea. JNS omits the count breakdown and the testimonials.
Charged language
“re-victimized”“hefty profit”
For example
“Pinhasi allegedly had no special technology and instead contacted the cybercriminals who targeted the clients” — The Jerusalem Post
“re-victimized his clients while extracting a hefty profit for himself” — JNS