European Enforcement Operation: Gal Barak — The Wolf of Sofia — Taken Down

A Coordinated Blow Against a Pan-European Crime Network

In a significant multinational enforcement effort, Austrian, German, and Bulgarian authorities have dismantled a major criminal organization running fraudulent online broker operations and extensive money laundering schemes. Over recent months, the Scam-or Project, acting as an independent investigative source, has contributed crucial intelligence to law enforcement, leading to the arrest of Gal Barak, the Israeli national infamously known as the Wolf of Sofia.

This action marks a turning point in the fight against transnational financial cybercrime, targeting a network responsible for defrauding thousands of investors across Europe.

Gal Barak and E&G Bulgaria: The Power Behind the Schemes

Gal Barak, operating from Sofia, was the beneficial owner of illicit broker sites such as:

• SafeMarkets

• Golden Markets

• XtraderFX

He and his partner Marina Andreeva managed the criminal enterprise through E&G Bulgaria, which oversaw boiler room operations and aggressive online marketing strategies that targeted European investors. Barak also served as managing director of Tradologic, a Bulgarian-based software provider whose platform supported many of these fraudulent brokers.

Scope of the Organization

Authorities are investigating several other individuals linked to the same criminal group. The organization reportedly involved dozens of shell companies across various jurisdictions, primarily led by Israeli nationals operating from Bulgaria. The main areas of operation included:

• Binary options

• Contracts for Difference (CFDs)

• Cryptocurrency investment fraud

Insider Cooperation Uncovered the Network

The success of the operation was largely due to insider cooperation. Former affiliates of the network provided vital intelligence that allowed law enforcement to map the inner workings of the organization—uncovering the names of companies, individuals, and financial accounts involved.

The Banking Question: AML Failures

Authorities are now scrutinizing the role of financial institutions and payment providers that may have facilitated these schemes through inadequate Anti-Money Laundering (AML) and Know Your Customer (KYC) measures. Among those under spotlight:

• Bulgarian Investbank

• Dutch-based Payvision

Both institutions are alleged to have played a supporting role by failing to prevent the flow of illegally obtained investor funds.

Arrest of Uwe Lenhoff and the Veltyco Link

Alongside Barak, Uwe Lenhoff, a German national and major shareholder in the listed firm Veltyco, was also arrested. Veltyco reportedly acted as a front for transferring investor funds to offshore destinations under Lenhoff’s control.

Brokers linked to the Veltyco network include:

• Option888

• TradoVest

• XMarkets

Lenhoff was also a shareholder in Tradologic, alongside Gery Shalon and Vladislav Smirnov.

Global Criminal Trio: Barak, Shalon, and Smirnov

The leadership of this cybercrime syndicate included:

• Gal Barak (Israel)

• Gery Shalon (Israel) – indicted in the U.S.

• Vladislav Smirnov (Russia)

Together, they operated a financial crime empire spanning the United States, Europe, Georgia, Israel, and Russia. Authorities estimate that hundreds of millions of euros were laundered through Investbank Bulgaria, ultimately reaching offshore companies controlled by these three figures and their associates.

Attempted Bribery and Disinformation Campaign

In a coordinated setup with authorities, further evidence was secured when Barak, Shalon, and Smirnov allegedly attempted to bribe the managing directors of some investigative media in an effort to suppress reporting on their operations. Conversations and digital communications related to the bribery were recorded and are now part of the criminal proceedings.

Additionally, the group is believed to have orchestrated fake news websites to spread false narratives and redirect suspicion away from themselves, actively trying to undermine reputations and mislead the public.

Conclusion

The arrest of Gal Barak and his partners marks a pivotal moment in the crackdown on cyber-financial crime networks. The investigation continues, and further disclosures are expected in the coming weeks.

If You’re a Victim of These Brokers

If you’ve been affected by the following brokers:

• SafeMarkets

• Golden Markets

• XTraderFX

• Option888

• TradeInvest90

• CryptoPoint

• GTOptions

…you are encouraged to document your losses and submit a report via dedicated whistleblower channels or through legal representatives.

File Your Claim here.