Introduction To the team at Wealth Recovery International, To Ms. Tami Hamm, This letter aims to address recent events and public discussions concerning Wealth Recovery International and its co-founder, Austin Smith, in relation to binary options activities and subsequent legal proceedings. Legal Status of Austin Smith Austin Smith, co-founder of Wealth Recovery International, has entered a guilty plea in a U.S. federal case involving conspiracy to commit wire fraud linked to binary options. As part of the plea deal filed on March 14, 2019, Smith admitted to misconduct related to his previous employment at BinaryBook. According to court filings, Smith…
Author: Tom
Reported Threats Linked to Gal Barak and Uwe Lenhoff Recent intelligence suggests that Gal Barak may have approached Fazli Hasi with a troubling request. Based on multiple sources and supporting evidence, it appears Hasi was allegedly asked to intimidate or harm individuals associated with ongoing investigations into Barak’s operations. After carefully evaluating the material received, it seems likely that the threat is real. Previous connections between Uwe Lenhoff and Fazli Hasi have also been mentioned in this context, suggesting this is not an isolated incident. Why This Is Being Made Public In situations like this, transparency can be the most…
Unraveling Cross-Border Financial Operations from Montenegro to Bulgaria A Widening Web of Financial Crimes The sprawling financial operations of Uwe Lenhoff and Gal Barak, two central figures in a multi-jurisdictional cybercrime network, appear even larger than previously revealed. The Central Bank of Montenegro (CBCG) initiated bankruptcy proceedings against Atlas Bank in April 2019, following administrative control imposed in December 2018. This bank, controlled by Montenegrin tycoon Dusko Knezevic, played a significant role in enabling illicit financial flows linked to the Lenhoff-Barak operation. Key Allegations: Atlas Bank is suspected of laundering more than €500 million. Knezevic, now in exile, has filed…
Interview with EU Victim Representative In a recent interview with Bulgarian journalist Desislava Rizova from bTV, Elfriede Sixt, a coordinator and financial crime analyst frequently consulted on EU fraud cases, shared insights into the ongoing investigation of Gal Barak, often referred to as the “Wolf of Sofia.” (article) She represents over 260 victims affected by schemes allegedly tied to Barak and his network, including platforms like XTraderFX, SafeMarkets, OptionStarsGlobal, and CryptoPoint. Arrest and Legal Proceedings In early February 2019, Gal Barak and his German associate Uwe Lenhoff were arrested as part of a large-scale investigation spanning Austria, Germany, and Bulgaria.…
Arrests and Allegations: The Core of the Criminal Network Gal Barak and Uwe Lenhoff, identified as key figures in a vast cybercrime organization, were detained by authorities in early 2019. Their arrests were the result of a coordinated operation between Germany, Austria, and Bulgaria. Lenhoff remains in custody in Austria, facing prosecution on multiple charges, including large-scale investment fraud, money laundering, and the formation of a criminal enterprise. The charges relate to schemes that allegedly defrauded thousands of retail investors across Europe. Alongside Barak and Lenhoff, at least eight additional individuals are under investigation, among them Austrian citizen Joachim Kalcher.…
Excerpt: The founders of Payabl, Dietmar Knoechelmann and Ruediger Trautmann, are not just fintech entrepreneurs — they are key figures from Wirecard’s murky past. Their deep entanglement in the Wirecard scandal and shady acquisition trails is no coincidence. Today, with Payabl, they appear to be recycling the same high-risk business model — complete with online gambling, aggressive media intimidation, and dubious partnerships. The recent alliance with CoinsPaid in a SLAPP lawsuit based on allegedly forged documents is only the latest warning sign. Key Points Dietmar Knoechelmann and Ruediger Trautmann held executive roles during Wirecard’s most opaque growth phase. Knoechelmann was…
Excerpt: The Cypriot payment processor Payabl, founded by ex-Wirecard executives, is under scrutiny for its aggressive legal tactics against critical media. In a worrying parallel to the disgraced German fintech Wirecard, Payabl has joined forces with CoinsPaid in a SLAPP lawsuit against FinTelegram — allegedly based on forged documents. This strategic alliance, exposed in a recent FinTelegram investigation, raises serious concerns about both companies’ operational practices in the high-risk payment sector. Key Points Payabl is co-founded by ex-Wirecard execs Dietmar Knoechelmann and Ruediger Trautmann and appears to mirror Wirecard’s business and media strategy. CoinsPaid and Payabl have joined forces in…
Cybercrime Allegations and Legal Proceedings Israeli national Gal Barak has been identified by EU authorities as a key figure in a global cybercrime organization. One of his known partners, German citizen Uwe Lenhoff, was apprehended through coordinated European police operations and remains in custody in Austria. Barak was also initially detained in Sofia but was subsequently placed under house arrest, reportedly for health-related reasons. Despite this, he has continued to operate his network and grant media interviews. Notably, his current agenda includes the expansion of boiler room operations in the Philippines. Extradition Efforts Blocked by Local Influence Authorities in Austria…
Investigating Operators of Silver Wolf, Brown Fox, Blond Bear, and Blue Seal Update (May 20, 2019 – 5:30 PM) In response to recent inquiries, the CEO of ExchangeITonline, Offer, stated that his exchange does not support Forex-related transactions and fully complies with applicable KYC/AML regulations. Nevertheless, further research has shown that several scam broker websites still link to ExchangeITonline for cryptocurrency deposits. Additional clarification has been requested. Overview of the Scam Network On May 2, 2019, the Italian financial regulator CONSOB issued a warning about Silver Wolf Limited and its brand ECNpremium. In response, the operators switched the website’s ownership…
Court Disruption Delays Extradition Proceedings A bomb threat at the Palace of Justice in Sofia recently postponed a critical hearing on the extradition of Gal Barak to Austria. The delay has effectively allowed Barak—often dubbed The Wolf of Sofia—and his partner Marina Andreeva to continue overseeing their suspected broker scam operations from within Bulgaria. Although Barak was arrested in early 2019, he was released into house arrest on the basis of alleged health concerns and has since resumed his role in managing the organization. Time Is Running Out Inside sources close to the Barak-Andreeva circle suggest mounting financial pressure and…