Background: Pressure on Scam-or Project and Its Partners
Israeli national Gal Barak, alleged operator of boiler room networks and fraudulent brokers such as XTraderFX, SafeMarkets, OptionStarsGlobal, and CryptoPoint, has reportedly launched legal threats against a German hosting provider working with Scam-or Project, an independent platform reporting on financial fraud.
According to sources familiar with the situation, these threats follow Barak’s earlier attempts to silence investigative reporting, including reported incidents of DDoS attacks, legal intimidation, and even an alleged bribery attempt of €5 million.
The Vienna Meeting and Recorded Admission
In January 2019, Barak reportedly arranged a meeting in Vienna through his legal representative. The stated goal was to resolve “misunderstandings” about his role in the schemes. The meeting was monitored and recorded by investigators. According to documentation, Barak not only offered a substantial bribe but also acknowledged his involvement in the broker scams. He allegedly indicated that the funds would be funneled via his partners Gery Shalon and Vladislav Smirnov, suggesting the use of illicit financial channels.
Arrests and Investigations
Following this and other findings, EU arrest warrants were issued for both Gal Barak and his associate, Uwe Lenhoff, in early 2019. Barak was later detained in Sofia, while Lenhoff was arrested in Austria and transferred to Germany. Barak’s extradition to Austria remains pending amid ongoing legal proceedings.
His partner Marina Andreeva, a Bulgarian national and alleged CFO of the scheme, is also under investigation. Internal documents and communications — including WhatsApp messages, bank statements, and notary records — reportedly indicate her direct involvement in payment coordination and money laundering linked to investor losses.
Legal Tactics and Threats to Hosting Partners
As part of their defense strategy, Barak and his legal team — including high-profile Austrian lawyers Stefan Huber and Peter Lewisch — have issued formal cease-and-desist letters to web hosting providers, requesting the takedown of investigative reports that link him and Marina Andreeva to the fraudulent broker operations.
Despite ongoing legal threats, Scam-or Project confirms that it continues to receive updates from victims and whistleblowers. Victims of the aforementioned platforms report continued contact from recovery scammers offering to help them retrieve their lost funds — but only in exchange for further upfront payments.
Denials and Contradictions
Interestingly, while Barak’s legal representatives deny his involvement in the schemes, communications from January 2019 appear to contradict these claims. In direct conversations with members of the investigative team, Barak allegedly acknowledged his role in XTraderFX and expressed a willingness to compensate victims who reached out.
Suppressed Reporting and Change in Policy
Authorities initially requested refrain from publicly sharing certain details of the investigation, including the alleged death threats. However, due to direct legal threats and increased pressure, the publication has chosen to disclose more of its findings in the interest of transparency and public awareness.
Ongoing Activities and Financial Pressure
Barak is reportedly fighting extradition using some of the most expensive legal counsel available in both Austria and Bulgaria. At the same time, fraudulent trading platforms believed to be linked to his network continue to emerge, while victims receive persistent messages about new investment “opportunities” or promises of recovery — often contingent on further payments.
Sources suggest that Barak remains financially active in the region, possibly in an effort to finance ongoing legal defenses and related expenses.
Final Notes
While Barak’s legal team cites concerns over privacy and reputation, observers point out the irony — as these same protections were allegedly denied to thousands of retail investors affected by the schemes.
Scam-or Project affirms its commitment to responsible, fact-based reporting and will continue to publish updates as further evidence emerges.