Background: Enforcement Actions Prompt Relocation
In February 2019, coordinated enforcement actions by EU authorities in Germany, Austria, and Bulgaria led to the arrest of Israeli national Gal Barak and German associate Uwe Lenhoff, principals of the cybercrime organization E&G Bulgaria. While Lenhoff remains in custody in Austria, Barak was released into house arrest in Bulgaria for health reasons. Despite this, reports indicate that Barak continues to manage his cybercrime network.
Strategic Move to the Philippines
Following the closure of boiler rooms in the EU, Serbia, Bosnia-Herzegovina, and Montenegro, E&G Bulgaria is reportedly establishing new operations in the Philippines (source). This move is managed by Barak’s associates, Kfir Levy and Maor Sioni, who have experience setting up similar operations in Eastern Europe.
Key Individuals Involved
|
Name |
Role in E&G Bulgaria’s Operations |
|
Kfir Levy |
Established boiler rooms in Bosnia-Herzegovina, Serbia, and Georgia. Now overseeing the Philippines expansion. |
|
Maor Sioni |
Experienced in managing boiler rooms targeting German-speaking markets. Collaborating on the Philippines project. |
Continued Operations Despite Legal Challenges
Despite the shutdown of previous broker schemes like XTraderFX, SafeMarkets, OptionStarsGlobal, and CryptoPoint, Barak and his team are reportedly reinventing their cybercrime organization. The relocation to the Philippines raises concerns about the safety and legality of such operations, especially given past incidents where Israeli nationals were arrested in the Philippines for similar activities.
Conclusion
The strategic shift of E&G Bulgaria’s operations to the Philippines underscores the adaptability of cybercrime networks in the face of law enforcement actions. It also highlights the ongoing challenges authorities face in combating transnational cybercrime.