3DMAX CEO Reveals Organisation Lost Close to Seven Figures in Fraud Committed by Former Partner
TL;DR
- French esports organisation 3DMAX has been defrauded of a sum described as "six figures, close to seven" by a former partner, with CEO Stéphane Pons confirming the fraud occurred shortly before he joined the organisation and wiped out all team revenue including Major sticker money.
- Pons, whose background in finance allowed him to identify the abnormal transactions and freeze accounts before further damage could occur, has committed alongside the organisation's owner to cover 100 percent of the missing amount for the players.
French Counter-Strike organisation 3DMAX has been through something that no esports team should ever have to deal with. CEO Stéphane Pons has gone on record to confirm that a fraud committed by a former partner cost the organisation close to seven figures, wiping out all revenue that had been generated including income from tournament placements and Counter-Strike Major sticker sales. Pons offered a candid and detailed account of how the situation unfolded and what 3DMAX is doing to address it.
The fact that the organisation is still standing, and that its CEO is making public commitments to protect the players from the financial fallout in impressive.
What Pons Revealed and How the Fraud Was Discovered
The fraud predates Pons' arrival at 3DMAX. In his own words: "Shortly before my arrival, we were victims of fraud perpetrated by a former partner of the organisation. Legal action is underway. The sum is six figures, close to seven. However, I have committed, along with the owner, to cover 100% of the missing amount for the players. We're reassessing our income to ensure the team has all the support and tools it needs."
That is a significant amount of money for any esports organisation to absorb, let alone one operating at the regional level of French CS2 competition.
His finance background turned out to be the critical factor in limiting the damage. After identifying transactions that appeared abnormal, Pons moved quickly to freeze the organisation's accounts and stop any further funds from being extracted. The specifics of what those transactions looked like have not been disclosed, but the ability to spot them in the first place speaks to the kind of forensic attention to financial detail that most esports organisations, which are often run by people with backgrounds in gaming rather than finance, simply do not have.
The Full Revenue Wipeout Including Major Sticker Money
One of the more striking details in Pons' account is that all team revenue had been taken. Not a portion, not a single income stream, but everything the organisation had generated was gone. That includes money earned from tournament placements, which for an organisation competing at a meaningful level in European CS2 can represent a significant figure across a competitive season, and money from Major stickers.
When Valve hosts a Major tournament, the 32 competing teams have player autograph stickers and team stickers available for purchase in capsule form within the game. Valve splits 50 percent of the revenue generated from those capsule purchases equally among all 32 competing teams. For a team that makes it to a Major, sticker revenue can represent a meaningful cash injection, particularly for smaller organisations that do not have the sponsorship portfolios of the biggest names in CS2.
3DMAX has competed at the Major level. That sticker revenue, which players and fans generate simply by engaging with the in-game items during tournament season, was supposed to be sitting in the organisation's accounts. It was not. Along with everything else, it had been redirected.
What 3DMAX Is Doing for Its Players
The most immediate concern when an esports organisation loses its operating capital is what happens to the players under contract. Player salaries, tournament travel, support staff, and the operational infrastructure needed to remain competitive all cost money, and an organisation that has had its accounts drained can quickly find itself unable to fulfil its obligations to the people competing under its banner.
Pons addressed this directly and unambiguously. The commitment to cover 100 percent of the missing amount for the players is not a vague reassurance about future intentions. It is a specific financial commitment made publicly by the CEO and the organisation's owner together.
More:Gray Zone Warfare Is Now "PvE-First" and the Label Change Says More Than You Might Think
Read
Source Editing
Visual Editing
Related news
