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. Several additional individuals remain listed as suspects across multiple jurisdictions. Barak was apprehended by Bulgarian authorities while attempting to flee to Serbia. He is currently under house arrest in Sofia, pending a requested extradition to Austria.
Barak’s Rebranding Attempt: “Cat of Sofia”?
When questioned on his nickname, “Wolf of Sofia,” Barak deflected, referring to himself instead as the “Cat of Sofia.” He redirected blame toward his former associate Ilan Tzorya. However, evidence and testimony provided to Scam-or Project suggest a different narrative. According to sources close to the investigation, Tzorya voluntarily began cooperating with EU law enforcement long before Barak’s arrest.
Scam-or Project reviewed records of several direct meetings between Barak and independent journalists, including an incident where Barak allegedly attempted to offer €5 million in startup capital to silence critical reporting. Barak also signed written confirmations stating his role in running the XTraderFX operation, later deflecting blame to Tzorya for allegedly sabotaging the business.
In WhatsApp exchanges between Barak, Vladislav Smirnov, and Gery Shalon—two other key individuals in the wider payment network—the group collectively denied that Tzorya was involved in operational decisions. These communications, now submitted to authorities, appear to support Barak’s leadership role and autonomy over the schemes.
Victim Testimonies and Fund Recovery
Victims across Europe continue to seek justice and restitution. In her interview, Sixt confirmed that legal and financial experts have been engaged to assist in recovering lost funds. She disclosed:
“We are currently in discussions with Barak’s legal team. Over 260 victims have signed Power of Attorney statements, representing nearly €6 million in claims.”
According to ongoing investigations, some settlements have been discussed, but no concrete payments have yet been confirmed. Transparency and accountability remain key concerns as legal proceedings continue.
Looking Ahead: Truth vs. Image Management
While Barak attempts to recast himself as a minor player, mounting documentation, firsthand statements, and law enforcement evidence point to his direct involvement in orchestrating fraudulent broker schemes. Authorities in the EU are expected to weigh this evidence in upcoming extradition and criminal proceedings.
If convicted, Barak, Lenhoff, and their co-conspirators may serve as an example of what happens when cyber-enabled financial fraud targets EU citizens. The underlying message from affected parties remains firm: EU investors deserve transparency, and cross-border fraud will not go unanswered.