My.Games divests creator platform allegedly used to violate Russia sanctions

My.Games has divested Boosty, its former creator support platform after allegations it was used to violate international sanctions on Russia. According to an investigation by Dutch outlet Nieuwsuur, creators solicited cryptocurrency donations on the platform and then used these funds to support Russian war efforts.

While Boosty’s parent company, CEBC, and its parent company My.Games are located in the Netherlands, the company has ties to Russia. MyGames was part of Russian internet giant VKontakte (VK) prior to the war. Eventually, Alex Chachava — who is not on a sanctions list — purchased the developer for $642 million in 2022. This divestiture allowed the company to move out of Russia to Amsterdam and continue operating.

Today, Elena Grigorian serves at My.Games CEO, while Chachava serves as the company’s chief alchemist. Under her leadership, My.Games has sold Boosty to Cypriot businessman Pavel Kharaneka, founder of Broadsmart Group.

“In 2023, we began a restructuring process that spun off the non-game development and publishing businesses of My.Games and placed them under the management of CEBC. We began negotiations to sell these assets in March 2024 and we are pleased to announce that they have been finalized. This step supports the company’s commitment to focus all its resources on the core business, namely creating exceptional gaming experiences for players across the globe,” said Grigorian.

The sale to Kharaneka is expected to close in Q3 2024.

“I’ve long wanted to expand my portfolio with digital business assets, and I’m glad to now have that opportunity with CEBC. We live in an era where digital content is an integral part of people’s daily lives, helping them learn, express themselves, and monetize their skills and creativity. Boosty and DonationAlerts have clear potential, and I look forward to seeing how these platforms continue to evolve and contribute to the creative community under new leadership,” said Kharaneka.

My.Games denies allegations

Of course, this transaction occurred just days after Boosty users allegedly used the platform to circumvent international sanctions. My.Games denied the allegations in an email to GamesBeat.

The platform pointed to policies it has in place to comply with international laws. Additionally, it cooperates with law enforcement agencies upon request. These include its sanction screening procedure (part of its anti-money laundering policy), anti-bribing and anti-corruption policies.

According to a My.Games spokesperson, the platform has terminated its relationship with Kirill Fedorov, the creator Nieuwsuur identified. Additionally, they highlighted that Fedorov did not disclosed the purpose of these funds on the Boosty platform. Rather, he disclosed this on Telegram.

According to NOS.nl, the Dutch Financial Intelligence Unit is currently aware of the accusations. While unconfirmed, this could allegedly lead to placing Chachava on the sanctions list or further investigations from Dutch authorities.

My.Games and its subsidiaries deny that law enforcement has contacted the companies and that it is under investigation. Similarly, it denies the allegations that VK CEO Vladimir Kirienko sold My.Games for below market value, and that Chachava and his family have no relationship to Vladimir Putin or Kirienko beyond the sale of My.Games.

Moreover, My.Games “intends to protect its business reputation by all available means, including legal proceedings. The company is already in contact with legal advisers and is preparing for the necessary legal actions,” a spokesperson for the company told GamesBeat.