Arrest of “The Wolf of Sofia”
Gal Barak, an Israeli national, is known as the head of E&G Bulgaria, a company linked to multiple unauthorized online trading platforms including SafeMarkets, XTraderFX, Golden Markets, and OptionStarsGlobal. These platforms are accused of defrauding thousands of retail investors across Europe and beyond. In February 2019, Barak—often referred to as the “Wolf of Sofia”—was apprehended in Bulgaria during an international law enforcement operation. Due to reported health concerns, he was subsequently placed under house arrest in Sofia.
At a recent court session in the Bulgarian capital, the judge chose to postpone the decision on whether to extradite Barak to Austria. The new date for the hearing was set for April 22, 2019.
A Global Web of Cybercrime
Barak is believed to be a central figure in a broad cybercriminal network alongside several international partners:
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Gery “Gabi” Shalon – based in Israel
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Vladislav “Vlad” Smirnov – a Russian national
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Uwe Lenhoff – a German entrepreneur with a long history in online ventures
This network is alleged to have operated not only illegal broker brands but also invested in unregulated online casinos and payment service providers.
In February 2019, Uwe Lenhoff was also detained and is currently being held in Austria. Both Lenhoff and Barak face charges related to money laundering, fraud, and other financial crimes.
U.S. Charges Against Gery Shalon
Barak’s associate, Gery Shalon, faces separate legal proceedings in the United States, where he has been indicted for various cyber offenses, including securities fraud and laundering of illicit funds. After being arrested in 2015, Shalon is reported to have entered into a plea agreement involving a payment of $400 million. While no trial date has yet been confirmed, reports from Bloomberg suggest he may be cooperating with U.S. authorities, potentially reducing his prison sentence.
Media Observations and Background Contacts
Before the arrests of Gal Barak and Uwe Lenhoff, several media outlets had been in communication with individuals linked to the alleged cybercrime network, including Barak, Vladislav Smirnov, and Gery Shalon. Journalistic sources familiar with the matter report that during these interactions, offers involving potential business collaboration were made. These prior communications have provided valuable insight into the internal dynamics of the network, as well as supporting material that could be relevant in ongoing investigations.
European Authorities Press Forward
Barak’s potential extradition to Austria represents a significant procedural move in the broader efforts to dismantle the international cybercrime group. Although the formalities are ongoing, European law enforcement appears committed to ensuring that those involved face justice.
The Scam-or Project continues to monitor the situation and intends to provide updates as further developments unfold.