Oligarchs son got Twitch fined more than all the money in the world in Russian courts
www.polygon.com
Amazon-owned Twitch Interactive is suing former League of Legends professional Kirill Konstantinovich Malofeyev, better known online as Likkrit, after he sued the company and won in a Russian court over the suspension of his Twitch account. Twitch filed the 25-page lawsuit, which has been reviewed by Polygon, in a San Francisco court on Thursday.Malofeyevs Twitch account was shut down in 2022 months after Russia invaded Ukraine and the United States government imposed sanctions on some Russians; Malofeyev was sanctioned for his role in a worldwide sanctions evasion and malign influence network, per the lawsuit, led by Russian oligarch Konstantin Malofeyev his father.Alongside the younger Malofeyevs suspension, Twitch also adhered to sanctions that required it to cease payments to Russian streamers. Twitch informed Russian streamers via email in March 2022, according to The Washington Post. We appreciate how frustrating and difficult this is and would like to reassure you that if you cant provide an alternative financial institution, we will do our best to pay you revenue you have earned as soon as we are permitted to do so, Twitch wrote to impacted Russian streamers at the time. Game developers in Ukraine and Russia were also impacted by U.S. sanctions that blocked payments from Valves Steam marketplace.Malofeyev sued Twitch in a Russian court in June and October 2022, two moves Twitch called a violation of its terms of service. (The first lawsuit was dismissed without prejudice, Twitch said in its complaint.) The court decided, citing Russian law created to counter sanctions, that Twitch (and Amazon) violated his rights by suspending and demonetizing his account. The Russian court demanded Twitch restore the account or pay a compounding penalty for non-compliance. Twitch hasnt reinstated the account, and its racked up a hefty fine: 100,000 rubles for each day that account is not reinstated. It also doubles each week without limit, per Twitchs lawsuit, reaching astronomical levels. Twitch said in its complaint that it received inadequate notice for a December 2022 hearing, and so it was unrepresented entirely.Because this penalty doubles each week, it purportedly is now larger than all the money in the world, Twitchs lawyers wrote. The astreinte is unjustified on any measure and is wholly disproportionate to the less-than-$2,000 in revenue generated by Malofeyevs Account while active.In 2023, Malofeyev filed a Turkish Enforcement Action to enforce the Russian ruling, serving the action on Amazons Turkey office. Twitch maintains that the agreements Malofeyev signed were with Twitch not Amazon making the actions invalid.[Twitch and Amazon] have been deprived of legal certainty provided by those agreements and subjected to Russian courts application of Russian laws specifically designed to undermine U.S. sanctions, Twitchs lawyers wrote.Twitch is looking to the U.S. court system to prevent the Russian judgment from taking hold and to compel arbitration, as is written in the terms of service agreements all Twitch users sign.Russias war on Ukraine is entering its fourth year.
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