Former Xsolla executives have accused CEO Aleksandr Agapitov of misusing company funds. According to documents from lawsuits filed by six former executives, Agapitov allegedly transferred over $120 million from Xsolla accounts to his personal accounts between 2021 and 2023. The documents claim that nearly $70 million was transferred in 2023 alone.
Agapitov would often return up to $25 million to the company’s account one to three weeks later, totaling $102 million over six months. Most of these funds were reportedly used for personal loans and residential construction, including building a second mansion next to his first. Xsolla’s current president, David Stelzer, dismissed the allegations.
He called the documents “inaccurate” and stated that Xsolla manages its financial affairs “responsibly and in full compliance with applicable laws and regulations.” Stelzer added that comparing the alleged figures against the company’s overall revenue for the period creates a distorted picture of Xsolla’s financial activities.
Xsolla faces financial misuse allegations
Two former executives, ex-global accounting VP Emil Aliyev and CFO Joe Chang, were fired after inquiring about Xsolla’s financial practices.
Their terminations led to wrongful termination suits, alleging that Agapitov would “terminate executives without any warning if they made any complaints about potentially unlawful activity.” Some of these suits have now been settled or dismissed. The allegations raise serious questions about the financial practices at Xsolla, though the company’s leadership vehemently denies any wrongdoing. Agapitov and Stelzer have asserted that the concerns were raised only after the individuals involved were terminated.
Aliyev, however, maintains that he reported his findings prior to his dismissal. Stelzer emphasized that Xsolla, a privately owned company, manages its finances responsibly and in accordance with all applicable laws and regulations. He added, “Agapitov, as the sole owner of the business, ensures all financial arrangements related to the company are vetted through highly reputable third-party legal, financial, and tax experts and supported by a robust internal team of lawyers and financial advisors.”
The lawsuits and accusations have brought attention to the financial management practices at Xsolla, a major player in the gaming industry.
As the legal proceedings continue, more details may come to light regarding the alleged misuse of company funds and the circumstances surrounding the termination of the former executives.
