High-Profile Case Opens in Vienna Court
The trial of Israeli national Gal Barak, accused of running a network of online trading platforms allegedly used to defraud European investors, officially commenced in Vienna. The case is being closely monitored across the EU, as it may set a precedent for prosecuting cross-border cyber-financial crimes. Observers present included legal representatives connected to Russian businessman Vladislav Smirnov, a known associate of Barak.
Controversial Remarks from Defense Counsel
Barak, who has denied all charges, is represented by attorney Peter Lewisch, a prominent figure in Austria’s legal community. In his opening argument, Lewisch claimed that those who invested through platforms linked to Barak — including XTraderFX, SafeMarkets, OptionStars, CryptoPoint, and Golden Markets — were not victims of deception, but rather individuals motivated by unrealistic profit expectations. He described the platforms as high-risk environments akin to gambling.
Referring to online advertising and sales tactics used by the associated call centers, Lewisch argued that users who believed in such offers were “naive” and voluntarily chose to take financial risks. His tone and characterization of investors raised concerns among other courtroom participants.
Position on Operational Involvement
The defense acknowledged Barak’s ownership stake in several of the entities under investigation, including the E&G Bulgaria call center based in Sofia. However, it was argued that Barak had no direct involvement in day-to-day operations or client communications, and therefore should not be held liable for specific transactions or losses.
A core element of the defense was the claim that the trading platforms were structured more like entertainment services than legitimate investment products — a strategy intended to distinguish the activity from regulated financial services.
Key Questions Raised by Prosecutors
The prosecution continues to focus on several central issues:
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The flow of millions of euros through companies connected to Barak.
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The use of unregulated payment intermediaries and complex offshore setups.
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Misleading deposit instructions provided to customers, including false payment references.
These elements are viewed as indicators of intent to defraud.
Deaths Linked to the Broader Investigation
The trial follows the unexpected death of Barak’s former business partner, Uwe Lenhoff, who passed away in custody in Germany in July 2020. The official cause has not been publicly confirmed. Separately, a former employee of a related call center operation reportedly died of heart failure three weeks after giving a statement to law enforcement, adding to the gravity surrounding the case.
What Comes Next
The next phase of the trial, expected to take place later in July 2020, will include testimony from individuals who lost money via Barak-linked platforms. These statements are expected to offer personal insights into how the platforms operated — and whether users were misled or knowingly accepted speculative risks.
This case continues to serve as a reference point for ongoing legal efforts across Europe aimed at addressing large-scale financial fraud conducted via digital platforms.