Talon Esports CEO hits back at $1M loan allegations, but the controversy continues

After being accused of mishandling a $1 million loan, Talon Esports CEO Sean Zhang issued a public statement blaming “miscommunication” for the dispute and calling for a swift, “civilized” resolution. But the controversy shows no sign of slowing down, with the lender now releasing screenshots and additional evidence.

On Aug. 25, X (formerly Twitter) user Hedgedhog7 alleged that Talon borrowed $1 million on the promise of a quick turnaround but delayed repayment for nearly two months. While the principal was eventually returned, they said Talon still owes $75,000 in interest.

Interestingly, according to Hedgedhog7, when repayment failed to arrive at first, they had refinanced the loan at 20 percent per annum for two weeks, while their trust in the organization was still intact. After further delays, the loan was restructured a third time at 2.5 percent per week for three weeks, with the lender having lost most of their confidence about the money returning by this time.

Their accusations spread like wildfire across the esports community, especially the VALORANT fandom, with many wondering why Talon would want to (or have to) borrow such a large amount from a potentially questionable source.

Zhang, however, responded publicly, admitting the repayment was mishandled but calling it a “simple matter of miscommunication” with the accounts team. While pledging to wire the remaining interest, he criticized the manner in which the accusations were made, calling them “malicious.” But hedgedhog wouldn’t back down either.

In a follow-up post, Hedgedhog7 dismissed claims of miscommunication and accused Talon of lying about “when the money was coming.” They also included a screenshot of a chat, supposedly between them and the CEO, indicating the latter’s tendency to stall and offer conflicting excuses about the repayment timeline.

Hedgedhog7 has freshly accused Talon of failing to send the interest money despite the organization publicly assuring repayment that same morning in Hong Kong. “Legally yes, you do still owe me 75k as per our signed loan documents,” they wrote, further stressing they have no intention of deleting any of their tweets—even if the money were repaid.

Talon Esports has yet to comment further on this matter.

The ongoing dispute has raised questions about Talon’s financial stability and Riot Games’ oversight of partnered organizations. With both sides entrenched, the controversy shows no signs of cooling, and the reputational fallout for Talon may only be beginning.