The political plotlines take a grim turn as attorney Hans Litten faces a massive setback in his desperate appeal to save Greta. Fearing for the life of her young son, the imprisoned and isolated Greta struggles to come to terms with her imminent execution.

As the world moves closer to the catastrophic Wall Street Crash of 1929, Colonel Wendt continues his master plan to dismantle the Republic. He consults with Marie-Luise Seegers on economic collapse, and later approaches Alfred Nyssen.

However, "The Armenian" (Edgar Kasabian) is far from convinced of his partner's guilt. In a classic noir sequence, Edgar kidnaps a hospitalized, unconscious Weintraub right from under the noses of the authorities. Using brutal electroconvulsive therapy to force him awake, Edgar demands the truth. Weintraub reveals a chilling twist: he was knocked unconscious by the real killer, who was dressed in the Phantom costume, and framed for the crimes. 🌆 Desperation in the Slums