TALON Faces an Unpaid Loan Controversy, Raising Concerns Over Financial Stability
- Miguel Méndez
- Aug 28
- 2 min read
As the VALORANT competitive scene in the Asia-Pacific region prepares for the VCT Pacific 2025 Stage 2 Finals, one of the participating teams has been drawn into controversy after its owner became embroiled in a social media scandal. Sean Zhang, CEO of Talon, has been accused of failing to fully repay a loan taken in the organisation's name, fueling thousands of comments about the team's financial stability.
TALON CEO Faces Loan Dispute While Team Competes for VCT Championship Qualification
On X, the user @hedgedhog7 posted a series of messages explaining that in June, TALON approached him to request one million dollars. Although the original agreement stated the money would be returned within just a few weeks, the loan was refinanced, and the organisation did not return the principal until August 22 without including the interest.
Hedgedhog7, who described himself as both "a Talon investor and a friend of Sean," said he tried to contact team executives, but his messages were ignored, leading him to take the issue public. He also warned other investors, alleging that those providing loans to the team are "participating in a Ponzi scheme".
Zhang and TALON Respond to the Accusations
Following the controversy, Sean Zhang issued his response, explaining that "this was a simple matter of miscommunication with the accounts team on our end. They issued the one million dollars back and did not take into account the interest". He also acknowledged his responsibility as CEO and expressed regret that Hedgedhog7 "posted a tweet with such malice."
TALON also released a statement acknowledging unexpected administrative delays in the distribution of accumulated prizes, confirming that all players have received their salaries. The organisation additionally set dates for pending payments and stated that they are working with their legal team to ensure the organisation's financial operations, closing the message by thanking the community for its patience and support.
The Debt With Hedgedhog7 Continues
Despite being promised that the interest payment would be settled by August 27, Hedgedhog7 posted a new series of messages claiming the debt remains. He also shared screenshots of conversations with Zhang, along with the contracts signed during the two months the loan has been in place.
As the dispute between Zhang and Hedgedhog7 continues, TALON is preparing for its lower bracket final against Rex Regum Qeon in the VCT Pacific 2025 Stage 2 on August 30. The winner of the best-of-five series will secure direct qualification for VALORANT Champions Paris and face Paper Rex for the league title on August 31.
