Authorities in Germany are intensifying their fight against cyber-enabled financial fraud by targeting a part of the ecosystem that has long operated in the shadows: the software developers who allegedly supply tools used by scammers. In a significant legal development, the Bamberg Regional Court has begun hearing a case against a technology executive accused of providing software that prosecutors say enabled fraudulent online trading platforms to steal millions of euros from investors worldwide.

The trial marks the second time in 2026 that the Bavarian court has prosecuted an individual for allegedly supplying technological infrastructure to international cyber-fraud networks. While law enforcement agencies traditionally pursue the operators of scam call centers and the criminals who directly interact with victims, German prosecutors are now attempting to hold software providers criminally responsible when their products are used to facilitate large-scale fraud.

The defendant in the current case has been identified only as “Shay B.” – a common practice under German privacy laws that restrict the publication of full names during criminal proceedings. According to the indictment, Shay B. served as the chief executive officer of the Israel-based company Airsoft between March 2015 and at least June 2021.

Prosecutors accuse him of four counts of organized commercial fraud. They allege that Airsoft developed and sold what was described as a “brokerage all-in-one solution,” software that could be used to operate fake online trading platforms designed to deceive investors into believing they were participating in legitimate financial markets.

Authorities argue that the software played a central role in enabling scammers to run convincing fake investment websites. The platforms often displayed fabricated trading dashboards, manipulated account balances, and simulated market activity, persuading victims to deposit increasing sums of money in hopes of generating profits.

By allegedly receiving a share of the fraudulent revenue generated by the platforms using the software, prosecutors claim the company’s leadership crossed the line from providing neutral technology to actively participating in criminal schemes.

During opening arguments on March 2, prosecutors from Bavaria’s Central Office for Cybercrime emphasized the massive scale of the alleged fraud. In a session that lasted nearly two hours, they read aloud a long list of victims whose names and financial losses were included in the case record.

According to the prosecution, the combined losses from victims connected to the platforms involved in the case exceed 94 million Euros – roughly $108 million. The victims are believed to come from numerous countries, reflecting the global reach of online trading scams that operate across borders and jurisdictions.

The indictment, obtained by journalists from the Organized Crime and Corruption Reporting Project (OCCRP), suggests that Airsoft’s role may have extended beyond simply selling software licenses. Investigators claim that, depending on the level of access granted to customers, Airsoft employees sometimes had to participate directly in operating or maintaining the systems used by the fraudulent platforms.

“In some cases – depending on the respective authorizations – the involvement of Airsoft employees was required, which did indeed occur,” the indictment reportedly states.

Such allegations could prove crucial for prosecutors attempting to demonstrate that the company knowingly supported criminal activities rather than merely providing a tool later misused by third parties.

According to investigators, Airsoft’s technology was deployed across multiple fraudulent online trading platforms. Among those cited in the indictment are Huludox, Fibonetix, Nobeltrade, Tradecapital, and Forbslab – websites that presented themselves as legitimate online brokerage services.

These platforms were allegedly operated by criminal organizations running sophisticated call-center operations in several countries, including Bulgaria, Serbia, Ukraine, Georgia, Israel, and Kosovo. The call centers employed agents who contacted potential victims, often posing as investment advisers or financial analysts, and convinced them to open trading accounts on the fraudulent platforms.

Victims would initially see what appeared to be profitable trades on their online dashboards. Encouraged by these apparent gains, many deposited additional funds. However, the trading activity was entirely fictitious, and when investors eventually attempted to withdraw their money, they discovered the accounts had been frozen or the platforms had disappeared.

The ringleaders behind these scam operations were convicted in 2025 by the Bamberg Regional Court after authorities dismantled parts of the network. The current trial aims to determine whether the software provider that allegedly supplied the technological backbone for those scams can also be held responsible.

Shay B.’s legal team has acknowledged that their client has partially admitted to certain factual aspects of the case but denies knowing that the software was being used for criminal activity.

According to a press officer at the Bamberg court, the defendant has conceded some operational details but “largely denies” having awareness of the fraudulent nature of the platforms.

His lawyers argue that the case raises fundamental legal questions about the liability of software developers when their products are misused by clients.

“The central question before the court is at what point, and under what legal conditions, a software provider may be held criminally liable for the misuse of its product by third parties,” the defense said in a written statement to journalists.

Legal experts say the outcome could set an important precedent for the technology industry. If the court determines that software providers can be held accountable when they knowingly facilitate criminal activity, companies that develop digital infrastructure could face greater scrutiny over how their products are used.

The Bamberg trial follows another closely watched case earlier in 2026 involving a different software developer accused of enabling similar fraud schemes.

In February, the court sentenced Mikheil Biniashvili to seven years and six months in prison after he admitted his involvement in online trading scams.

Biniashvili had been associated with the notorious Milton Group network, a fraudulent call-center operation previously exposed by investigative reporters. Prosecutors said he developed and distributed the Puma Trading System (Puma TS), a software platform used to operate hundreds of fake investment websites.

According to court documents, Puma TS was deployed by approximately 397 separate “scam brand” platforms worldwide. These platforms used the system to simulate trading activity and create the illusion of profitable investments for victims.

Unlike the current defendant, Biniashvili admitted that he knew his clients were operating scams and that he received a share of the illicit profits generated by the schemes. Authorities estimated that victims lost around $150 million through platforms connected to the software.

Experts who study cybercrime say the German prosecutions reflect a broader shift in strategy by law enforcement agencies seeking to dismantle complex fraud networks.

Online investment scams have become one of the fastest-growing forms of cybercrime globally. According to many cybersecurity researchers, the operations are highly organized and involve multiple layers of actors – from website designers and software developers to call-center agents and money-laundering networks.

Yaniv Hanoch, a professor of decision science at the University of Wolverhampton who studies online scams and behavioral decision-making, believes targeting the technological “enablers” of these operations could have a meaningful impact.

“Since it is difficult to catch the actual scammers, disrupting the process is an excellent idea and sends a message to others,” Hanoch said. “As there are many players in the process, anything that can put a dent in the process is welcome.”

By focusing on the infrastructure that supports fraudulent platforms – including software systems that simulate trading environments – prosecutors hope to undermine the technical backbone that allows scammers to operate at scale.

The outcome of the case against Shay B. could have far-reaching consequences beyond the immediate allegations. If the court determines that the software provider knowingly facilitated fraud, it may establish legal principles that influence how similar cases are handled across Europe and beyond.

Technology companies often argue that they cannot be responsible for how customers use their products, drawing comparisons to industries that supply neutral tools such as hosting services or communications platforms. Prosecutors, however, contend that the line is crossed when developers knowingly design systems specifically intended to deceive users or share in profits generated through illegal activity.

Observers say the Bamberg court’s decision could help clarify where that boundary lies.

Proceedings in the case are expected to continue through the month, with judges expected to deliver a verdict shortly after the hearings conclude.

Regardless of the final outcome, the trial highlights an evolving legal strategy aimed at dismantling the infrastructure behind global cyber-fraud operations. As online scams continue to grow more sophisticated and lucrative, authorities appear increasingly determined to hold not only the scammers themselves but also the technological facilitators accountable.

For victims who have lost millions through fake online investment platforms, the prosecutions represent a rare attempt to address the broader ecosystem that makes such schemes possible. Whether the courts ultimately agree with prosecutors’ approach could shape the future of cybercrime enforcement in Europe.

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