Gal Barak

Gal Barak is a convicted fraudster behind a vast network of fake broker-brands, boiler-rooms and money-laundering shells. This in-depth risk assessment unveils how his operations targeted retirees and first-time investors across Europe, why recovery is nearly impossible and what red flags you must watch.

Gal Barak – Known Facts and Conviction
Gal Barak is an Israeli national who has been convicted in Austria in September 2020 for serious commercial fraud and money-laundering.  The Austrian court found that from around 2016 to 2019 he operated fraudulent trading platforms (such as XTraderFX, SafeMarkets, OptionStarsGlobal and GoldenMarkets) via boiler-rooms located in Bulgaria (Sofia), Serbia and other Eastern European jurisdictions. According to court-documents the platforms manipulated trading software so that no real trading took place and investors had no realistic chance of profit. The court identified that at least €2.6 million in damages were caused to 1,330 Austrian victims, though the total damage to European retail investors is estimated to exceed €200 million and more than 30,000 victims.

Business Model & Structural Red Flags
Gal Barak’s fraud network combined several high-risk features. He used shell companies and offshore jurisdictions: over 46 shell companies tied to his network controlled more than 82 bank accounts in Bulgaria alone. The network employed cold-calling boiler-rooms, aggressive marketing, fabricated “profits” inside fake trading platforms, and an elaborate money-laundering setup via licensed and unlicensed payment-processors. Many victims were retirees or investors with minimal trading knowledge, primarily located in Western Europe (Germany, Austria, UK, Switzerland). For a consumer this model is extremely high risk: the brand may appear legitimate, but behind it lies sophisticated deception and routing of funds into shells from which recovery is very difficult.

Adverse News, Victim Reports and Reputation
Investigative media have repeatedly called out Gal Barak’s operations as among the biggest retail investment frauds in Europe. A 2020 report described how his network used a ‘boiler-room’ model in Bulgaria where victims were made to believe in a profitable trading account but ultimately lost everything. One publication noted that the network promised easy returns, offered initial wins to gain trust, then blocked withdrawals once the victim deposited larger sums. Victims report that once they insisted on withdrawing, contact was cut, accounts disappeared or they were asked for further payments for “taxes/fees” or “system lock-in”. Numerous shell-companies and formerly legitimate-sounding brands have been traced back to Barak’s network.

List of Brands, Websites and Related Entities
The following are publicly documented to have links to Gal Barak’s network (though newer entities may exist):

• XTraderFX (XTRADER FX) – one of the platforms identified in court as operated by Barak’s network.

• SafeMarkets – cited as part of the fraud network.

• GoldenMarkets – likewise flagged in multiple investigations.

• OptionStars / OptionStarsGlobal – a core brand in the network referenced by Austrian authorities.

• CryptoPoint – identified in reports as a crypto-broker front tied in the operations.

• E&G Bulgaria (formerly E&G Finances) – the call centre operator in Bulgaria tied to Barak’s organisation.

• Payvision B.V. – a Dutch payment processor that is alleged to have handled payments for Barak’s network via shell companies.

• Connectum Ltd. – one of the payment facilitators identified in money-laundering chains linked with Barak’s fraud network.

Risk Assessment: Why the Threat Is Severe
Gal Barak’s case presents a high-risk profile across multiple dimensions. The likelihood of loss is very high when dealing with brands tied to his network because the core product (real trading) was never delivered. Recovery from loss is very difficult because the funds were routed through offshore shell entities and multiple jurisdictions with weak enforcement cooperation. The regulatory reputation is heavily negative: Barak is a convicted fraudster, many victims remain unpaid, and the broader financial crimes ecosystem remains active and adaptive. Red-flags abound: offshore registration, cold-calling, pressure to deposit, promises of guaranteed high returns, difficulty in withdrawal. Victims tend to be vulnerable individuals seeking investment gains and are lured into traps where they lose savings they cannot recover. The exposure remains ongoing: even after the criminal conviction numerous similar brands continue to surface, sometimes reusing the same infrastructure, meaning the risk is not only historical but current.

Consumer Alert and What You Should Do
If you encounter a broker brand, trading website or investment platform that displays features similar to those used by Gal Barak’s network you should proceed extremely cautiously. Verify the regulatory licence in your jurisdiction, attempt a small deposit and test a withdrawal before committing large sums. Do not respond to unsolicited cold calls or high-pressure investment offers. Obtain all documentation (emails, chats, bank-transfers) in case you need to pursue recovery or report fraud. If you suspect you have been targeted by a brand linked to Barak’s network or a copy-cat model, report the incident to your national financial regulator, contact forensic-fraud groups and consider legal advice. Be skeptical of “recovery firms” offering to get your funds back for a large upfront fee—they may themselves be scams. Warn friends and family, particularly older adults or those unfamiliar with complex investments: the modus is replicable and the lure remains ever-present.

Summary and Final Warning
Gal Barak is not simply a “bad” broker: he is a convicted ringleader of a large-scale investment fraud network that targeted vulnerable investors across Europe via sophisticated boiler-rooms, fake trading platforms, manipulative software and layered money-laundering mechanisms. His brands and associated entities are part of a blueprint used repeatedly in online broker-fraud. If you are approached by a broker that you have never heard of, that promises high returns with little risk, uses offshore registration, cold-calls you, or refuses to allow withdrawal—treat it as very likely a fraudulent scheme of the same nature. The risk of losing your capital is extremely high; once transferred into shell-structures, recovery becomes next to impossible. Protect your savings by staying alert, verifying everything, and avoiding shortcuts.