Xsolla, a game-focused commerce platform, faces allegations that CEO Aleksandr Agapitov has misused company funds. Six former executives have filed lawsuits against Xsolla or Agapitov since 2019, with two specifically addressing financial malpractices. According to documents, Agapitov allegedly transferred $120 million from company accounts to his personal accounts between 2021 and 2023.
Nearly $70 million of that sum was transferred in 2023 alone. Agapitov would later return up to $25 million per transfer, typically within one to three weeks, totaling $102 million returned within a six-month period. While most of the money went towards personal loans, $10 million is said to have been directed to “residential construction,” specifically a second mansion next to his first.
Xsolla’s current president, David Stelzer, dismissed the claims as “inaccurate,” stating, “Xsolla manages its financial affairs responsibly and in full compliance with applicable laws and regulations.” Stelzer argued that analyzing the alleged figures “against the company’s overall revenue for the period, is highly misleading and creates a fundamentally distorted picture of the company’s financial activities.”
However, two former executives, ex-global accounting VP Emil Aliyev and CFO Joe Chang, were individually fired for inquiring about Xsolla’s financials. Their dismissals resulted in wrongful termination suits filed by the former chief people officer and product VP.
Allegations of misuse challenge Xsolla
A suit filed in 2022 suggests these firings were routine and that Agapitov would “terminate executives without any warning if they made any complaints about potentially unlawful activity.” Some of these suits have since been settled or dismissed. Aliyev claimed he was terminated after discovering a $40 million transfer from company accounts to Agapitov’s personal accounts. This lawsuit was dismissed with prejudice in March 2024.
Agapitov told Bloomberg that the $40 million was a loan that had been repaid in full. Chang alleged wrongful termination after expressing concerns about Xsolla’s adherence to US accounting law in 2018. However, Chang did not personally sue Xsolla.
Agapitov has countered that both Aliyev and Chang raised these issues only after their termination, whereas Aliyev maintains he reported his findings before being fired. Stelzer defended the company, emphasizing that Agapitov, as the sole owner of the business, ensures all financial arrangements are vetted through reputable third-party legal, financial, and tax experts as well as a strong internal team of lawyers and financial advisors. This unfolding situation at Xsolla highlights complex issues surrounding corporate governance and allegations of financial misconduct within the gaming industry.
