Twitch Sued for More Money Than Exists in the World

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Summary

  • Russian streamer lawsuit leads to an unrealistic sum larger than any money in existence.
  • Russian courts demand Twitch to reinstate an account or pay a colossal sum.

Twitch is facing a lawsuit that claims it owes more money than the world possesses combined. Yet, Twitch isn’t rolling over, and instead, they have responded by filing a counterclaim with the intention of challenging the verdict.

In 2022, platforms such as Twitch, YouTube, Valve, and Epic Games were compelled to enforce sanctions against Russia and Russian individuals due to the ongoing conflict in Ukraine. As a result, any individual or company based in or having bank accounts within Russia was prohibited from receiving payments under these sanctions. This move has sparked some controversy, and in this instance, a Russian streamer has filed a lawsuit against Twitch, which has resulted in a substantial claim.

According to Polygon’s report, Twitch is taking legal action in response to a lawsuit that could require it to pay a streamer an astronomical amount. This lawsuit stems from a dispute over a Russian League of Legends streamer, Kirill Konstantinovich Malofeyev (also known as Likkrit), having his Twitch account suspended back in 2022. The suspension was due to the Russian sanctions, which identified Malofeyev as a Russian national involved in a “global network” allegedly led by his father, a Russian oligarch, for sanctions evasion and influencing activities.

Initially, a lawsuit filed in June was dismissed. However, a second lawsuit filed in October saw the Russian courts ordering Twitch to either reactivate Malofeyev’s account or face a daily fine of 100,000 rubles (approximately $1,100 USD), increasing by another 100,000 rubles every week. This escalating penalty is the substantial amount Twitch is currently contesting.

Twitch Files Countersuit Against Russian Streamer Outcome

Currently, Twitch is taking legal action by counter-suing, arguing it didn’t receive a proper heads up about the initial hearing and considers the penalty unwarranted. Twitch asserts that Malofeyev made approximately $2,000 USD from streaming prior to the service being halted. In 2023, Malofeyev initiated a Turkish Enforcement Action against Amazon Turkey offices with an aim to collect funds, but Twitch contends that the streamer agreed to terms with Twitch, not Amazon, implying those actions are ineffective. Twitch is urging U.S. courts to mandate arbitration.

Although Amazon’s market value exceeds $2 trillion, it doesn’t mean they could be fined an amount greater than all the world’s wealth, even if U.S. courts supported a ruling similar to one by a Russian court. This isn’t an unprecedented situation for online streaming platforms, as they have previously faced demands for massive sums from Russian courts. For instance, following YouTube’s ban of two Russian channels due to sanctions, the channels filed lawsuits, and Russian courts sided with them. The accumulating fines led to YouTube owing a staggering amount equivalent to multiple times the global GDP by the end of 2024, which is approximately $20 decillion USD.

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2025-02-26 02:53