The leak of secret financial documents in 2016 revealed that some of the world's wealthiest people hid their assets in offshore companies.

Mossack and Fonseca, founders of the now defunct law firm Mossack Fonseca, face money-laundering charges but claim they were not involved in any unlawful acts.

The firm previously stated it was hacked and the leaked information was misrepresented.

If convicted, they could serve up to twelve years in prison each.

The Panama Papers implicated over a hundred politicians, including former heads of state, billionaires, and sports stars.

The "Panama Papers" scandal involved the leaking of confidential documents from the law firm Mossack Fonseca, based in Panama.

The records revealed how the wealthy and powerful, including politicians and businesspeople, allegedly hid their wealth in offshore accounts in tax havens like Panama and the British Virgin Islands to avoid taxes.

The documents were first leaked to the German newspaper Suddeutsche Zeitung in 2016 and shared with the International Consortium of Investigative Journalists.

The firm's co-founder, Jurgen Mossack, was present in court during the investigation, while Rene Fonseca, another co-founder and a former Panamanian minister, was represented by lawyers who said he was in a hospital in Panama.

Mossack Fonseca was shut down in 2018.