The high-profile cybercrime trial of Gal Barak, an alleged Israeli operator behind fraudulent online trading platforms, began in Vienna at 9:30 a.m. with widespread international attention. Barak is accused of running a network of scam brokerages that defrauded tens of thousands of retail investors across Europe. Observers in the courtroom included the Austrian lawyer representing Barak’s Russian business associate, Vladislav Smirnov, and Elfriede Sixt, principal at the European Funds Recovery Initiative (EFRI), who attended on behalf of victims.
Controversial Defense Argument Sparks Backlash
While Barak maintained a plea of not guilty, the most shocking moment came during the opening statement by his attorney, Peter Lewisch, one of Vienna’s most prominent and expensive defense lawyers.
In a speech that lasted over an hour, Lewisch claimed that the real issue was not fraud, but the gullibility and greed of the victims. He referred to the retail investors—many of whom lost their life savings—as “stupid” (using the German term “deppert”) and “thrill-seekers” who were allegedly more interested in the excitement of gambling than in genuine investments.
He argued that the schemes run through platforms such as XTraderFX, SafeMarkets, Golden Markets, CryptoPoint, and OptionStars should be viewed as betting operations, not investment fraud. According to Lewisch, Barak’s involvement was limited to ownership roles—such as being the owner of the E&G Bulgaria call center in Sofia—and he did not directly participate in day-to-day operations.
Blaming the Press and Victims
In a particularly disturbing twist, Lewisch’s plea appeared to place the blame not just on the victims but also on FinTelegram, a financial watchdog and investigative outlet that has extensively reported on Barak’s network. According to the defense, it is the reporting and the victims’ own actions that have put Barak on trial—not any fraudulent conduct on his part.
The courtroom reaction to the defense strategy was sharply critical, with legal observers calling the argument cynical and offensive. Critics have questioned how millions of euros from over 30,000 victims across the EU ended up in offshore accounts connected to Barak if the operations were allegedly legal. The use of illegal payment processors, offshore entities, and false payment references has only deepened suspicions.
Mysterious Deaths Surrounding the Case
Adding to the gravity of the proceedings, the trial has been overshadowed by suspicious deaths. Barak’s former partner, Uwe Lenhoff, was found dead in his prison cell just two days before the trial began. Now, authorities have confirmed that a former Serbian employee of one of Barak’s boiler rooms died from heart failure at age 33, only three weeks after giving a statement to the police.
What’s Next?
The trial is set to resume at the end of July 2020, with testimony from some of the injured investors—the very people whom Barak’s attorney has disparaged in court. Their accounts are expected to play a pivotal role in rebutting the defense’s controversial narrative.
This case is considered a landmark trial for cybercrime in the European Union and could set significant precedents for future prosecutions involving online investment fraud and cross-border financial crimes.
Stay tuned.