Twitch’s Legal Battle Against Russian Streamer Kirill Malofeyev
Twitch, the popular live streaming platform owned by Amazon, is finding itself embroiled in a particularly contentious legal dispute with Kirill Konstantinovich Malofeyev, a Russian streamer and former League of Legends professional player. This legal saga began in 2022 when the United States imposed sanctions on Russia in response to its invasion of Ukraine. Among those affected was Malofeyev, whose connections to his father, a prominent Russian oligarch named Konstantin Malofeyev, and his involvement in what the U.S. government described as “a worldwide sanctions evasion and malign influence network,” led to his suspension from Twitch.
The Initial Suspension and Malofeyev’s Response
Twitch suspended Malofeyev’s account in February 2022, aligning with the U.S. sanctions. Known by his gaming handle "Likkrit," Malofeyev was a well-known figure in the gaming community, but his ties to his father and the broader sanctions evasion network made his presence on the platform problematic. In a swift and dramatic turn of events, Malofeyev filed two lawsuits against Twitch. The first lawsuit was dismissed by Russian courts, but the second, leveraging new Russian laws aimed at countering sanctions, succeeded. The Russian court ruled in Malofeyev’s favor, ordering Twitch to pay an astronomical fine of 100,000 rubles per day for every day his account remains suspended, with the fine doubling each week "without limit."
The Impossibly High Fine
The magnitude of the fine is staggering. According to Twitch’s legal team, the total amount purportedly exceeds the total wealth in the world, making it not just impractical but impossible to pay. This fine is seen as entirely disproportionate to the revenue generated by Malofeyev’s account while it was active, which amounted to less than $2,000. The sheer absurdity of the sum has left Twitch and its parent company, Amazon, in a precarious legal and financial position. The company’s lawyers argue that the fine is "unjustified on any measure" and represents a clear overreach by the Russian court system.
Amazon’s Involvement and the Turkish Enforcement Action
In 2023, Malofeyev escalated the legal battle by filing an enforcement action in Turkey against the Turkish branch of Amazon. This move is particularly contentious because, while Twitch is a subsidiary of Amazon, Malofeyev’s agreement was with Twitch directly, not Amazon. Twitch and Amazon view this Turkish action as invalid and are now seeking protection within the U.S. legal system. The companies aim to prevent the Russian judgment from being enforced and to compel arbitration instead, a more equitable and manageable dispute resolution method.
The Broader Context of the Conflict
The legal entanglement with Malofeyev is not occurring in a vacuum. It is a direct consequence of the ongoing conflict between Russia and Ukraine, which began on February 24, 2022, and continues to this day. The invasion has had far-reaching consequences, affecting not only the countries directly involved but also the global business community. For platforms like Twitch, the decision to suspend accounts tied to sanctioned individuals is a necessary, albeit fraught, measure to comply with international law and maintain their integrity.
Seeking Resolution and Upholding Principles
As the third anniversary of Russia’s invasion of Ukraine was marked on February 24, 2023, Twitch and Amazon are fervently working to navigate this complex legal landscape. The companies are committed to upholding the principles of fair play and legal compliance, even as they face an unprecedented and disproportionate challenge. Their efforts to seek legal protection and compel arbitration reflect a broader commitment to maintaining the balance between honoring international sanctions and ensuring that disputes are resolved fairly and within reasonable bounds. The resolution of this case will have significant implications for how global platforms handle sanctions and legal actions in the future.
