Denmark’s tax agency has recovered €232m from funds seized in Germany linked to Sanjay Shah, the founder of hedge fund Solo Capital and the central figure in the Cum-Ex dividend tax fraud, according to a report by Bloomberg.

The recovered funds, connected to a now-closed money laundering probe in Hamburg, will go to SKAT, Denmark’s Customs and Tax Administration.

Shah was sentenced in Denmark to 12 years in prison in 2023 for orchestrating part of the €1.4bn tax fraud. Although the German case has been dropped following the Danish conviction, Shah still faces separate Cum-Ex charges in Cologne.

The Hamburg investigation alleged Shah laundered profits through German banks, exploiting dividend tax refund schemes in Denmark and Belgium. Prosecutors also accused him of misusing the tax-exempt status of a New York religious school to secure fraudulent refunds.

Denmark is continuing its global efforts to reclaim billions lost through Cum-Ex trading. The €232m will count toward a broader settlement agreement in London. An additional €9m seized from another suspect was transferred to SKAT last year.