Former Employees Accuse Xsolla CEO of Financial Mismanagement

An investigation by Bloomberg has uncovered allegations that Xsolla's founder, Aleksandr Agapitov, transferred over $100 million from company accounts to his personal accounts between 2021 and 2023. This claim has been dismissed by both Agapitov and Xsolla president David Stelzer. The allegations surfaced from lawsuits filed by six former executives who claim they were wrongfully terminated after raising concerns about the company's financial practices. One of the lawsuits, filed by former VP of global accounting Emil Aliyev, alleged that $40 million was moved from company accounts to Agapitov's personal accounts. Agapitov claims this was a loan that was fully repaid. Other lawsuits referenced concerns raised by former chief financial officer Joe Chang regarding the company's adherence to US accounting law in 2018. Agapitov and Stelzer have denied any wrongdoing, stating that the company's financial affairs are managed responsibly and in compliance with applicable laws and regulations. Stelzer also noted that juxtaposing the alleged figures against the company's overall revenue is misleading and creates a distorted picture of the company's financial activities.