Embattled esports tournament organizer Epulze has filed for bankruptcy in Sweden as per a listing with the Bolagsverket (Swedish Companies Registration Office). Epulze, a tournament operator primarily known for running Dota 2 events, filed their bankruptcy claim on Jan. 02, 2025, on just the second day of the New Year.
The bankruptcy marks a significant step in the company’s continued history of financial issues. In a September 2024 report, we highlighted and catalogued the allegations of non-payment against Epulze following the Dota 2 Dota Pro Circuit in 2023. Now, the company has progressed into insolvency proceedings.
Image Credit: Epulze
Epulze’s Financial Woes and Bankruptcy
Epulze’s problems began in May of 2023, when the first payment deadlines were missed for the company. What followed was an over 18 month saga of financial issues, during which time Epulze continued to host, co-host, and operate Dota 2 tournaments for the DPC. These issues allegedly included non-payment of invoices and salaries, reportedly caused by missing sponsor money and investment funds.
Beyond hosting tournaments, Epulze effectively operated as a talent agency at times, subcontracting its workers and talent to other events, and taking payment for these services. In some cases, these payments were not passed on to the talent and staff.
By 2024, the company had fallen largely silent. However, past employees and contractors remained hopeful that outstanding payments could be fulfilled. Epulze continued to operate events through online tournament platforms to a limited degree during this time.
Epulze co-hosted the Lima Major with 4D Esports. Image Credit: 4D Esports
Now, with the commencement of their bankruptcy in Sweden, as per the Bolagsverket, the company will likely shutter completely.
Sources familiar with Swedish corporate law had previously explained to this publication that employers are liable for fines and damages if they don’t pay salaries within the country. With this eventuality looming, Epulze has proclaimed its insolvency, and will be handed off to administrators.
However, questions remain over the fate of Epulze in Malaysia, where the company operated its studio. Like Sweden, Malaysia has corporate protections that prevent a business from being dissolved unless all outstanding salary debts have been paid. The company’s status in Malaysia is currently unknown.
This also likely spells doom for any hopes of outstanding payments and debts from Epulze being repaid. The company was one of the largest debtors in the Dota 2 tournament scene, as highlighted by Ben “Noxville” Steenhuisen on Twitter/X.
The company reportedly owed at least $866k dollars to players, staff, and teams, for prize money, wages, and other payments. The true figure could be higher.
With a new year of Dota beginning, it’s unfortunate that some of the first news of the season will be that talent and players will be missing out on payment.